Meme cryptocurrency Dogecoin (DOGE) is currently experiencing short-term buying pressure, partly capitalizing on the overall market’s attempt to exit the recent bearish scenario.
Recent gains by DOGE position the token to potentially surpass Avalanche (AVAX) in market capitalization. At present, Dogecoin boasts a market cap of $11.32 billion, securing the 10th spot, while Avalanche holds the 9th position with a market cap of $11.74 billion, a difference of $420 million.
Dogecoin is striving to reclaim its position after losing ground to AVAX in December. Considering the market cap difference between the two, attention is focused on DOGE’s ability to sustain buying pressure and potentially flip AVAX.
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Dogecoin price prediction
Examining the price of DOGE reveals that the token has traded in a narrow range between $0.70 and $0.08 in recent weeks, indicating a consolidation phase where both bulls and bears await a catalyst to break the stalemate.
Notably, Dogecoin has faced hurdles in the early days of 2024, and its performance above the $0.07 mark is crucial for initiating a rally that could see the token potentially surpass AVAX.
If Dogecoin manages to ascend beyond the $0.080 mark, there’s potential for the cryptocurrency to aim for higher milestones, possibly reaching $0.09 and even approaching the $0.1 mark after overcoming the $0.085 resistance. At the same time, a correction could see Dogecoin dropping below $0.07.
While Dogecoin has generally followed the overall market trend in recent months, bullish sentiment could be validated by external factors, particularly the influence of Tesla (NASDAQ: TSLA) CEO Elon Musk, a prominent token supporter.
The spotlight on Dogecoin has intensified after X (formerly Twitter) launched a dedicated ‘X Payments’ account, potentially expanding the token’s use cases. The resulting rally, driven by X’s interest, has positioned DOGE among the top altcoins.
Positive sentiments like these will likely generate more interest in DOGE, potentially increasing its market value and paving the way to surpass AVAX.
Dogecoin price analysis
By press time, DOGE was trading at $0.08, marking a daily increase of 3%, with a 3.6% gain on the weekly chart.
Technical indicators present an unfavorable outlook for the DOGE price, with the summary leaning towards a ‘sell’ signal at 11. Moving averages align with a ‘strong sell’ recommendation at 11, while oscillators lean towards a ‘buy’ signal at 2.
Ultimately, the possibility of Dogecoin flipping Avalanche in market cap will depend on several key elements, including the meme coin’s ability to sustain its bullish momentum. Given that both cryptocurrencies have recently traded in tandem with the general market, Dogecoin will also require a sustained boost from Musk-related developments.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
