Dogecoin (DOGE) price is heating up, with investors setting their sights on the next breakout above $0.25 as the memecoin turns bullish.
Despite being called a “joke,” the flagship meme coin continues to receive a lot of attention from investors.
Dogecoin (DOGE), the flagship meme coin and Elon Musk’s favorite cryptocurrency, is starting to signal a bullish outlook. DOGE has become one of the most well-known digital assets due to its association with Elon Musk and widespread adoption. Popularly considered a “joke” cryptocurrency, investors continue to be interested in the coin because of its potential to rally massively and return huge profits.
Data shows that nearly 96% of wallets holding DOGE have less than $1,000 in funds, which confirms both that the asset is for the masses and that most holders are holding it for quick returns. In 2021, when memecoin reached an all-time high of $0.7316, early investors cashed out and made millions of dollars in profits. Many people holding the token are now holding it with a FOMO (fear of missing out) mentality, expecting to make a quick buck.
DOGE’s partnership with Elon Musk continues to offer great potential for a rally. As highlighted by CNF, X’s plans to become a financial powerhouse could involve integrating DOGE as a payment method.
Dogecoin (DOGE) Price Outlook
As of writing, DOGE is trading at $0.1596, up 6% over the past 24 hours. This has gone a long way in recovering some of its losses from its 21% weekly plunge. While bulls are beginning to take control of the short-term price trend, the memecoin has been ranging between $0.1413 and $0.2036.
Dogecoin, ranked 10th with a market cap of $22.8 billion, has inspired a new wave of memecoins, some of which are beginning to challenge it. Shiba Inu (SHIB) is at the forefront with a market cap of $13.4 billion. The 13th ranked altcoin is committed to innovation, growth, and development to become the leading memecoin in the market and challenge top projects such as Ethereum, Cardano, and Solana.
One of the big concerns for DOGE investors is the ever-increasing supply. Unlike Bitcoin, DOGE has no supply cap. This means there could be an unlimited amount which is not good for its long-term growth.
Dogecoin's market cap reached $84 billion during its 2021 price peak of $0.68 per coin. Currently, Dogecoin's market cap is around $27 billion at a price of $0.20. If Dogecoin were trading at $0.68 today, its market cap would not be $84 billion, but over $91 billion. This shows that Dogecoin's total market cap can grow even if the price remains stagnant due to an increase in supply.
In the short term, Dogecoin is showing bullish signs. The price has found support at a key level twice, and the hammer candle pattern on the chart indicates a potential reversal. This hammer pattern with a long shadow suggests that sellers may be losing momentum and buyers are stepping in. Adding to this optimism, a technical indicator called the RSI is also holding above a key level, similar to buying opportunities in the past. If this RSI continues to strengthen, Dogecoin could rally by 15%, potentially reaching the $0.19 mark.
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