Dogecoin hit $60b market cap; can it reach new all-time high?

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market movements that defy conventional wisdom. However, the recent surge of Dogecoin (DOGE) has left me quite intrigued and impressed.

Dogecoin, the first meme cryptocurrency, has experienced a significant increase in November, outpacing numerous prominent digital currencies during this current market rally.

In just the last seven days, Dogecoin (DOGE) has experienced a tremendous surge, jumping up by an astonishing 143%. As a result, it’s now the star performer among cryptocurrencies during this favorable market period.

Significantly, this latest trend has been bolstered by significant occurrences in the wider market, like political events, for instance, the U.S. presidential election held on November 6, where Donald Trump, who was backed by Elon Musk, the wealthy CEO of Tesla, emerged victorious.

These occurrences propelled the growth of Dogecoin, enabling it to surmount short-term obstacles on November 7 and restart its upward trend on November 8, eventually hitting a remarkable peak of $0.40 – a level not attained since mid-June 2021.

As an analyst, I’m observing a significant surge in Dogecoin’s price: it’s up by approximately 54% over the past 24 hours. At this moment, each Dogecoin is being traded at around $0.428. This upward trend has propelled its market capitalization beyond the $60 billion threshold, with a current value of about $62 billion. Remarkably, this is the highest market cap for Dogecoin since May 2021, positioning it as the sixth-largest crypto asset in the market.

Retail holders drive DOGE

Based on information from Santiment, it appears that a substantial part of this increase is attributable to smaller, individual investors.

🐺📈 Regardless of your perspective on meme tokens, it’s hard to overlook the rise of the leading meme coin in the crypto space. Over the past 4 weeks, there has been a significant increase of 74,885 wallets holding less than 100,000 DOGE.

— Santiment (@santimentfeed) November 12, 2024

During the last month, approximately 75,000 new Dogecoin (DOGE) wallets containing less than 100,000 DOGE have appeared. On the other hand, a total of 350 large wallets (holding more than 100,000 DOGE) decreased their holdings. Interestingly, 108 of these large wallets bought back into the market shortly before the recent surge above $0.40.

It suggests that although retail interest is driving prices up, it may be necessary for institutional investors to remain involved for a lasting increase in growth.

Dogecoin overbought but optimism persists

Due to recent growth, Dogecoin has managed to surpass its current upper Bollinger Band of $0.3384. Meanwhile, its 20-day moving average stands at $0.1939 and the lower Bollinger Band is at $0.0494.

This spike suggests that Dogecoin’s price has deviated substantially from its usual price fluctuations, often indicating a market that may have gone too far.

Furthermore, the Commodity Channel Index currently stands at 293, implying that Dogecoin is deeply in overbought territory. Moreover, its Relative Strength Index reads 93.36, a level not witnessed since March 2024, which could indicate a possible upcoming phase of consolidation or correction.

Dogecoin has successfully surpassed several obstacles in its price movement. If the bullish trend continues, potential targets might reach approximately $0.50 and even beyond. But if it fails to stay above $0.40, we could see corrections towards the Fibonacci level of 0.236 at around $0.353 or a more significant drop down to $0.312 and possibly $0.280.

Can DOGE reach ATH?

Dogecoin’s further bullish expectations vary from each analyst’s perspective.

Despite the current signs that Dogecoin (DOGE) is overbought, analyst Ali Martinez sees opportunities for further gains. According to his analysis, DOGE might reach the middle or upper limit of a long-term uptrend channel, potentially reaching $2.40 or even $18 if bullish trends persist.

A test of the middle or upper boundary of the channel puts #Dogecoin $DOGE at $2.40 or $18!

— Ali (@ali_charts) November 12, 2024

Just like analyst Crypto Kaleo proposes, this upward trend may be just getting started, predicting possible price jumps to $0.50 and even beyond, with $1 serving as a significant target.

#Dogecoin / $DOGE

Move is just getting started.

.40-.50 next, $1.00+ after

— K A L E O (@CryptoKaleo) November 10, 2024

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2024-11-12 13:30