- Dogecoin (DOGE) price is heating up with investors eyeing $0.25 in the next breakout as the memecoin turns bullish.
- The flagship memecoin continues to enjoy massive investor interest despite its reputation as a “joke.”
Dogecoin (DOGE), the flagship memecoin and Elon Musk’s favorite cryptocurrency, is beginning to signal a bullish outlook. DOGE has become one of the most recognizable digital assets due to its association with Elon Musk as well as its mass adoption. Popularly regarded as a “joke” cryptocurrency, investors continue to take interest in the token due to its immense potential to rally and return a great profit.
Data shows that nearly 96% of the wallets holding DOGE have less than $1,000 both confirming that the asset is for the masses and that most holding the coin hold it for quick returns. In 2021, when the memecoin reached its all-time high of $0.7316, early investors cashed in and made millions in profits. Many holding the token now are FOMOing (Fear Of Missing Out) with expectations of making quick money.
DOGE’s association with Elon Musk continues to offer great potential for a rally. As CNF has highlighted, X’s plans to become a financial powerhouse could involve integrating DOGE as a payment method.
Dogecoin (DOGE) Price Outlook
At the time of writing, DOGE is trading for $0.1596 after a 6% surge in the last 24 hours. This will go a long way to recuperate part of its weekly losses having plunged 21%. Although bulls are beginning to take control over the short-term price trend, the memecoin has been trading in the $0.1413 – $0.2036 price range.
Ranked 10th with a market cap of $22.8 billion, Dogecoin has inspired a new wave of memecoins, some of which are beginning to challenge it. Shiba Inu (SHIB) is the lead with a market cap of $13.4 billion. The 13th-ranked altcoin is committed to innovating, growing, and developing to become the leading memecoin in the market and to challenge top projects such as Ethereum, Cardano, and Solana.
One key concern for DOGE investors is the ever-increasing supply. Unlike Bitcoin, DOGE does not have a supply cap. This means there could be an infinite amount that would work against its long-term growth.
Dogecoin’s market capitalization reached $84 billion during its price peak of $0.68 per coin in 2021. Currently, Dogecoin’s market cap is around $27 billion with a price of $0.20. If Dogecoin were to trade at $0.68 today, its market cap wouldn’t be $84 billion, but rather over $91 billion. This demonstrates that due to the increase in supply, Dogecoin’s total market cap can grow even if the price remains stagnant.
For the short term, Dogecoin is showing bullish signs. The price has twice found support at a key level, and a hammer candle pattern on the chart suggests a potential reversal. This hammer pattern, with its long wick, indicates sellers may be losing steam and buyers are stepping in. Adding to this optimism, a technical indicator called RSI is holding above a key level, similar to a past buying opportunity. If this RSI strength continues, Dogecoin could climb 15%, potentially reaching the $0.19 mark.
