Dogecoin saw a significant 11% price increase over the past 24 hours, surging from $0.0711 to $0.07884. This latest move builds on the meme coin's impressive 21% gain over the past week, showing strong momentum and interest from buyers.

With a market capitalization of $11.08 billion, Dogecoin maintains its position as one of the largest cryptocurrencies by market cap. Trading volume over the past 24 hours hit $738 million, underscoring the high activity around DOGE currently.

In this article, we'll analyze the key drivers behind this latest Dogecoin price surge, examining technical and fundamental factors. We'll also look at what it could mean for DOGE going forward into the second half of 2023.

Summary of Dogecoin's Recent Gains

Dogecoin has seen impressive gains over the past week, month, and past 6 months. Here is a quick rundown of the performance over key timeframes:

• Past 24 hours: +11%
• Past week: +21%
• Past month: -10%
• Past 6 months: -9%

After a difficult June where DOGE lost significant ground, the meme coin has found its footing again in July. The 21% weekly gain is notable and could mark a potential trend change if buyers can maintain control.

Looking at the longer-term picture, Dogecoin remains down modestly over the past 6 months. However, the recent surge in buying volume and momentum signals traders may be positioning for a broader trend reversal.

Examining the Technical Picture on the DOGE Price Charts

Analyzing Dogecoin's price action on the charts reveals some clues behind the recent bullish momentum. Here are some key technical takeaways:

• Breakout from falling wedge pattern - DOGE recently broke out of a falling wedge pattern on the daily chart. This is typically a bullish signal pointing to a reversal of the prior downtrend.
• Move above 50-day moving average - The price surge enabled DOGE to close decisively above its 50-day moving average. This key moving average had capped upside previously during its June decline.
• Bullish RSI divergence - Prior to the breakout, the Relative Strength Index (RSI) on Dogecoin formed a bullish divergence with price. This showed building bullish momentum before the eventual upside breakout.
• Solid volume on breakout - Breakouts are more credible when backed by strong volume. DOGE's surge was supported by a significant spike in trading volume - a validation of the move.

Overall, Dogecoin's technical picture looks constructive following the 11% single-day gain. Sustained trading above $0.078 and ideally the $0.08 handle would point to an extension of the short-term uptrend.

What's Driving the Renewed Interest in DOGE?

A few factors could be contributing to the renewed bullish interest and buying activity around Dogecoin recently:

• Overall crypto market rebound - Dogecoin tends to trade in line with the overall crypto market, which has seen gains lately. Its 11% gain mirrored solid moves higher for names like Ethereum and XRP.
• Elon Musk mentioning DOGE again - Speculation around tweets from Tesla CEO Elon Musk has boosted DOGE before. Musk tweeting about working with Dogecoin developers may have reignited interest.
• Low prices attracting buyers - Dogecoin trading down 80% from its all-time high makes it attractive for speculative buyers expecting a recovery back towards $0.70.
• Upcoming upgrades and developments - The Dogecoin team is working on upgrades like Dogecoin Core 1.14.6. This project development encourages holders looking for long-term adoption.

Traders appear confident DOGE can build on its recent breakout and continue recovering in the second half of 2023. However, volatility remains high, and buyers still need to show commitment.

What's Next for Dogecoin? Upside Price Targets to Watch

Now that Dogecoin is back in an apparent uptrend, where could its price be headed next? Some key upside targets and resistance levels to watch include:

• Pre-breakdown support near $0.10 - DOGE found support around $0.10 multiple times before its June breakdown. Reclaiming this level would be an important milestone.
• 50-week moving average near $0.12 - Clearing the 50-week MA would point to sustained momentum. This level provided support during 2021.
• 38.2% Fibonacci retracement around $0.15 - This Fib level aligns with the 2022 highs. Conquering $0.15 would open the door for a larger retracement of the downtrend.
• All-time high around $0.70 - Reaching its former ATH near $0.70 seems a distant target currently. However, a series of positive catalysts could motivate a retest later in 2023/2024.

On the downside, key support levels to watch include $0.070, the 21-day exponential moving average near $0.065, and the June lows around $0.049.

Final Thoughts: Cautiously Bullish on DOGE for Second Half of 2023

Dogecoin's technical picture and bullish momentum have notably improved after the meme coin's 22% rally off the June lows. If DOGE can maintain its grip above $0.080 in the near-term and continue rallying higher, that would confirm the trend reversal.

However, chasing short-term rallies in volatile altcoins has proven risky in 2022. Dogecoin's fundamentals and use case remain questionable compared to leading Layer-1 blockchain projects. As such, those looking to open longer-term positions should exercise patience and wait for confirmation of higher support levels holding.

That said, speculation and hype-trading can drive upside price action regardless of fundamentals. DOGE still undoubtedly has a dedicated community of followers who could send the coin on another dramatic rally.

Watch for Dogecoin to clear the pivotal $0.10 level on improving volume to signal the next leg higher. Conservative traders may want to wait for a daily close above $0.12 - $0.15 before assuming a new bull market is confirmed. Ultimately, DOGE's price action in the coming weeks will determine whether this reversal has true legs or is simply a bear market bounce.

Will Dogecoin Rally Back to New All-Time Highs This Year?

Dogecoin reaching another new all-time high before the end of 2023 is unlikely. For DOGE to return to ATHs near $0.70, it would require multiple positive catalysts and substantial adoption progress.

Given crypto market volatility and Dogecoin's ongoing development efforts, traders should adopt a cautiously optimistic perspective:

• Markets need more time to bottom - Most charts suggest overall crypto markets like BTC and ETH require more basing before entering confirmed bull trends. This doesn't rule out speculators rotating into altcoins like DOGE first.
• Scaling and adoption challenges remain - As a payments coin, DOGE is still barely used for transactions compared to networks like Visa. Significant development work is still required to achieve mainstream viability.
• Speculation crucial for new highs - Unless DOGE sees a mania like early 2021, pure speculation and hype from retail traders would likely need to drive prices dramatically higher in the years ahead.

A more reasonable upside target in late 2023 could be the $0.15 - $0.30 zone. This would represent a full technical breakout and slight new high while remaining reasonably achievable.

Can Dogecoin Recover Back to $1 Long-Term?

Although extremely speculative, Dogecoin rallies back to the $1 level or beyond cannot be ruled out in the 5-10 year timeframe. Here are some potential drivers that could motivate an eventual recovery back to $1:

• Widespread retail adoption for payments and transactions
• Backing from major corporate sponsors like Tesla or SpaceX
• Further embrace by prominent figures like Elon Musk
• Major exchange listings improve credibility and access
• Improved scalability from Dogecoin Core upgrades
• Mainstream interest and investing in meme coins/tokens

However, DOGE reaching back towards $1 would almost certainly require another massive hype-driven frenzy and bull run in crypto markets. While possible, this type of parabolic rally cannot be relied upon for investment planning purposes.

As such, those accumulating DOGE with multi-year time horizons should scale in cautiously and cost-average. Betting on a full return to $1 based on temporary hype or Elon tweets makes Dogecoin an extremely high-risk proposition.