Meme cryptocurrency Dogecoin (DOGE) has seized upon the ongoing market rally, breaching key resistance levels as it sets its sights on the coveted $1 mark.
In the wake of Dogecoin’s recent price surge, the meme coin is rapidly closing in on XRP in terms of market capitalization. As of press time, the market cap of the two cryptocurrencies shows a difference of nearly $4 billion, with XRP standing at $32.98 billion and DOGE at $29.98 billion.
The question arises: does Dogecoin have the potential to surpass XRP’s market capitalization? This achievement will primarily hinge on Dogecoin’s price movements.
Picks for you
Dogecoin price prediction
It’s worth noting that Dogecoin is currently trading above the critical $0.20 level, which has become a crucial support zone. Consequently, the coin’s ability to sustain its price above this point could pave the way for reaching the $0.30 mark. Indeed, Dogecoin has demonstrated potential for a rally, having doubled in price in 2024 alone.
On the daily chart, Dogecoin has established notable resistance at $0.22. If DOGE manages to breach this resistance, it could potentially maintain its upward momentum toward the $0.30 psychological level. Such a price position would likely see the coin’s market cap surpass the $30 billion mark.
In this regard, crypto analyst Rekt Capital suggested that Dogecoin is currently undergoing a retesting phase at the $0.20 level on the monthly timeframe. He pointed out a recent downside wick observed on the monthly chart, indicating a retest of the bull flag pattern on the weekly timeframe.
Despite fluctuations in price, the expert asserted that Dogecoin appears to be following its established plan, as indicated by its adherence to technical patterns and key support levels.
Dogecoin vs XRP fundamentals
Furthermore, other factors are poised to contribute to Dogecoin’s price movement, including its expanding acceptance as a payment method and robust community-driven initiatives. Moreover, ongoing support from influential figures such as Tesla (NASDAQ: TSLA) CEO Elon Musk is expected to play a pivotal role in the token’s trajectory.
Comparatively, Dogecoin’s history suggests its potential to rally alongside market momentum, particularly as XRP has largely consolidated below the $0.70 mark despite the ongoing rally. The market’s reaction to the upcoming Bitcoin (BTC) halving will be crucial, considering its historically bullish impact.
However, skeptics argue that Dogecoin’s valuation is predominantly speculative and driven by hype, lacking the fundamental utility and technological innovation inherent in other cryptocurrencies like XRP. Additionally, concerns persist regarding the long-term sustainability of Dogecoin’s price surge, with critics warning of heightened volatility.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
