Dogecoin is seeing impressive gains today, with the price up 5.53% over the past 24 hours to $0.07932. The meme-inspired cryptocurrency now has a market cap of $10.77 billion.

Trading volume for DOGE stands high at $1.61 billion in the past day. This shows strong interest in the coin. Over the last hour alone, the price has surged 1.79%, continuing its upwards momentum.

Is This a Sustained Recovery for Dogecoin?

Dogecoin's over 5% daily increase provides hope that this could be the start of a sustained recovery. The price is extending its rebound from the June lows and has now gained 15.74% in the last week.

The positive momentum aligns with Dogecoin's 16.55% monthly gain. However, the 6-month performance remains down 8.32%, indicating the longer-term outlook is still uncertain.

To confirm an uptrend, DOGE needs to break above resistance around $0.08. This area provided support earlier in the year and could now flip to become resistance. Clearing this hurdle would open the door for further upside towards $0.10.

What is Driving Dogecoin's Comeback Rally?

A few factors are contributing to Dogecoin's strong rebound. Firstly, the coin often benefits from ELon Musk's occasional tweets referencing it. Any high-profile endorsement can quickly send DOGE surging.

Additionally, Dogecoin tends to rally in sympathy with larger cryptos like Bitcoin. With Bitcoin recovering in recent weeks, altcoins like DOGE are also seeing speculative inflows.

However, Dogecoin remains a highly volatile asset. Traders should exercise caution, as steep pullbacks are common after massive runs. Still, further adoption from merchants could make this recovery more sustainable over the long run.