What will help Dogecoin return to the top 10 and overtake Avalanche?

Meme coin Dogecoin is seeking to regain its position after losing its place in the ranking to Avalanche (AVAX) in December.. Given the difference in market capitalization between the two, much will depend on DOGE's ability to withstand buying pressure and gain more value than AVAX.

Dogecoin price forecast

DOGE price analysis shows that the token has been trading in a tight range between $0.070 and $0.08 in recent weeks, indicating a consolidation phase where both bulls and bears are waiting for a catalyst to break the deadlock.

Notably, Dogecoin has faced headwinds in the early days of 2024, and the token's yield above the $0.07 mark is critical to starting a rally that could lead to an outperformance over AVAX.

If Dogecoin manages to break through the $0.080 mark, the cryptocurrency has the potential to target higher thresholds and possibly reach the $0.09 level and even approach the $0.1 level, breaking the key resistance at $0.085. At the same time, a correction could cause Dogecoin to fall below $0.07.

And although Dogecoin has followed the general market trend in recent months, the bullish sentiment on DOGE can be confirmed by external factors, in particular the influence of Tesla CEO Elon Musk.

Attention to Dogecoin intensified after a special account “X Payments” appeared on the X social network, which led to thoughts about integrating the token. As a result, the token meme entered the top three according to cryptanalyst Ali Martinez.

The three most popular altcoins today are:

CTSI – Cartesi has made a splash with a notable 70% price increase and is being discussed in many tweets.
DOGE – The price of Dogecoin has increased by 10%, helped by the launch of a dedicated “X Payments” account that focuses on #DOGE.
ONDO – Ondo Finance has made headlines for its expansion into the Asia-Pacific region, marking the opening of its first regional office.

Currently, DOGE is trading at $0.079, showing a daily decline of 0.6% and a weekly gain of 3.6%.

Dogecoin 7-day price chart. Source: CoinGecko

Technical indicators paint an unfavorable outlook for DOGE price: the summary is leaning toward a sell signal at 11. The moving averages are aligned with a strong sell recommendation at 11, while the oscillators are leaning towards a buy signal at 2.

Dogecoin Technical Indicators. Source: TradingView