Key Insights:
- Dogecoin’s surge to $0.2 sparks renewed enthusiasm, pushing its market cap beyond $20 billion.
- Analysts project a potential $1 milestone for Dogecoin, anticipating a 465% surge from its current levels.
- DOGE’s daily chart signals a positive short-term trend with the MACD and RSI, pointing towards strong buying momentum and bullish sentiment.
Bitcoin faced a significant setback, plunging nearly 10% on March 5, sending ripples of volatility across the cryptocurrency market. This came after BTC hit a new all-time high of $69,324, spurred by the approval of Bitcoin ETFs in January by U.S. Securities and Exchange Commission (SEC).
BTC/USD price chart: CoinMarket Cap
The global cryptocurrency market cap currently stands at $2.48 trillion, reflecting a 1.14% decrease in the last 24 hours. The correction in Bitcoin’s price triggered a domino effect, impacting major cryptocurrencies.
Meanwhile, Dogecoin made a notable move, reaching $0.2 for the first time since November 2021, marking a 128% increase this month and a 97% surge in the past seven days. The meme coin market witnessed DOGE briefly surpassing Cardano in market cap, securing the eighth position before falling back again.
As of this writing, Dogecoin is trading on a downtrend as bearish activity takes hold. DOGE dropped from a high of $0.19 to a low of $0.13, a decrease of over 9% in the past 24 hours. DOGE is currently at $0.1651 as bulls resist the downtrend, pushing the price toward the resistance zone.
DOGE/USD price chart: CoinMarket Cap
As DOGE soared to a $26 billion market cap, and Shiba Inu (SHIB) followed with $23 billion, the two prominent dog-themed meme coins showcased a combined market cap exceeding $20 billion each. Notably, this growth underscores the substantial expansion of the meme coin market since Dogecoin’s humorous origins.
The surge in interest extends beyond DOGE, with SHIB, PEPE, FLOKI, and BONK experiencing a remarkable 3,000% increase in trading volume over the past week, driven by rising prices and heightened crowd engagement, as reported by Santiment.
Crypto analyst Altcoin Sherpa sees the recent surge as a positive sign for the ongoing cycle. While refraining from predicting specific price points, he hints that a $1 valuation for Dogecoin wouldn’t be surprising. Such a milestone would signify uncharted territory for DOGE, with a 465% surge from its current price and surpassing its previous all-time high of $0.74.
Altcoin Sherpa points out that while DOGE may not outperform other meme-inspired cryptocurrencies like WIF, PEPE, and BONK in terms of gains, its deep liquidity offers a stable investment. The analyst suggests that DOGE and SHIB may alternate in leading gains among meme coins.
Technical analysis of the daily chart for DOGE reveals a favorable short-term trajectory. The Moving Average Convergence Divergence (MACD) indicator signals optimism as the MACD line surpasses the signal line, indicating a conducive buying opportunity.
BTC/USD 1-day chart: TradingView
Further affirming the market’s buying strength is the Relative Strength Index (RSI), which has risen above the 70 mark. This suggests a robust buying momentum, surpassing the influence of selling pressure. Moreover, the Awesome Oscillator exhibits green bars, reinforcing the prevailing bullish sentiment in the market.
