Dogecoin jumps to 5-week high, but will it last?

Dogecoin (DOGE) soared by 21% to 75 satoshi ($0.00028) 24h ago, its highest point in 5 weeks. It has since fallen back to 66 satoshi on spotty volume.

DOGE's jump was accompanied by a volume surge, at one point exceeding 100 million DOGE an hour- the highest rate since mid-September when DOGE rallied to 92 satoshi.

Herein lies the puzzle as to DOGE's next moves. On the one hand, today's jump on such inconsistent volume, combined with an equally steep retracement, indicates that the new price position is unstable. On the other hand, the aforementioned September rally showed similar volume and retracement characteristics and later resumed on a larger scale, bringing DOGE to 117 satoshi. In essence, the initial peak- as artificial as it was- was a harbinger for bigger things to come.

Traders may also find temporary comfort in DOGE's reconquering its 50-day moving average. DOGE has now crossed over this point six times since the September rise began, indicating more uncertainty for the short-term.

One also observes solid support forming around 55 satoshi. Combined with today's jump, piercing the 75 satoshi short-term resistance level, the overall pattern suggests that a possible double-bottoming has occurred, with additional gains likely in the short term.