Dogecoin (DOGE) has recently hit its highest level since July, reaching over $0.08. According to CoinMarketCap, the cryptocurrency has seen an increase of around 11% in the last seven days. Although DOGE is currently changing hands at around $0.0775, there is confidence among bulls that a near-term pump towards yearly highs above $0.010 could be possible. This optimism stems from the recent strong bounce from Dogecoin’s 200DMA at $0.068, but it is important to note that a bounce from the 200DMA does not guarantee positive momentum in the near future.
As Bitcoin continues to break out to 18-month highs with the hope of spot Bitcoin ETFs gaining approval in the near future, risk appetite in the broader crypto market is increasing. The total capitalization of the broader crypto market recently reached its highest level since last May, surpassing $1.4 trillion. If Bitcoin and the broader market continue to surge, this could potentially support Dogecoin as well. This positive sentiment has led to more bullish predictions for Dogecoin’s price in the coming days.
Dogecoin had been consolidating within a pennant structure for the past few months. However, earlier this month, it broke above this structure, accompanied by a bounce from its previous downwards trendline. Technical analysis suggests that there is a near-term bias for a pump towards the summer highs in the $0.1050 area. With the broader cryptocurrency space entering a new bull market, some investors see Dogecoin as an underpriced crypto at its current levels. The recent technical breakout further supports the expectation of strong gains in the near future.
To reach a market cap of $141.8 billion (given the current supply of just over 141.8 billion tokens), Dogecoin would require more adoption. Elon Musk’s hints about integrating the meme coin into a future X payments system have raised hopes for Dogecoin’s prospects. Reports of Musk secretly funding Dogecoin development in late August have also fueled optimism. However, for a significant Dogecoin rally to occur, concrete proof of the coin’s integration into X will be necessary.
The Uncertain Future of Dogecoin
While the recent developments and positive technical indicators provide reasons for optimism, the future of Dogecoin remains uncertain. The cryptocurrency market is known for its volatility and unpredictability. It is important for investors to approach Dogecoin with caution and carefully assess the potential risks before making any investment decisions. Only time will tell if Dogecoin can surpass its previous yearly highs and reach the coveted $1 mark.
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