Dogecoin (CRYPTO: DOGE) was among the best-performing major cryptocurrencies on Thursday as the meme coin broke out of a multi-month downtrend, a move that could signal the return of altseason.

What Happened: As Ash Crypto noted on X, formerly Twitter, Dogecoin's price action appeared to be mimicking its 2024 surge, breaking out of resistance within a rising wedge as the TOTAL2 index, which tracks the combined market capitalization of the top 1000 cryptocurrencies, also showed a similar setup. Both charts also flashed bullish reversals.

If Dogecoin's rally continues, it could spark broader momentum in altcoins as risk appetite flows into mid- and small-cap crypto assets.

Dogecoin is currently trading at $0.2482, up 7% over the last 24 hours as its RSI sat at 73.5, indicating that it may be overbought and setting it up for a short-term pullback.

Dogecoin price chart via TradingView

However, the OBV remained elevated at 47.94B, showing that there was sustained buying interest in the meme coin. If the bullish momentum continues, Dogecoin could push as high as $0.30.

With the RSI now in overbought territory, there may be potential for consolidation or minor pullbacks. As long as Dogecoin can remain above $0.23, the bullish structure will remain in place and social buzz and volume will likely determine the next major move for the meme coin.

Why It Matters: Dogecoin has historically been a reliable early indicator of altseason, serving as a bellwether for the broader market trends.

With Dogecoin breaking out of its downtrend and the TOTAL2 index also showing signs of a bullish reversal, it could signal the return of risk appetite for crypto assets after a period of market downturn.

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