- Dogecoin replaced Cardano as the eighth largest cryptocurrency by market capitalization after unleashing a massive rally.
- Dogecoin yielded 126% gains to holders over the past week, on-chain metrics signal DOGE’s uptrend could soon end.
- Analysts have identified Dogecoin liquidity zone between $0.13 and $0.14, a pullback is likely in the meme coin.
Dogecoin price broke past $0.15 for the first time since April 2022 following a massive rally in DOGE. Cardano lost its position as the eighth largest cryptocurrency by market capitalization to Dogecoin. Analysts argue that DOGE price is in the liquidity zone – a key crossroads for price – and the asset could witness a trend reversal soon.
Also read: Will XRP price rally as Coinbase throws weight behind Ripple in battle against SEC?
Dogecoin price surpasses key level first time in six months
Dogecoin, the largest meme coin by market capitalization recently witnessed a massive rally. Dogecoin yielded 126% gains for holders over the past week. The Shiba-Inu-themed cryptocurrency’s breakout resulted from three key factors: Elon Musk’s (self-proclaimed Dogefather) acquisition of Twitter, whale activity and Dogechain roadmap release.
Dogechain is the layer-2 scaling solution that bridges Dogecoin to decentralized applications in the ecosystem. Proponents believe “Elon Effect,” the billionaire CEO’s influence on Dogecoin price through his support for the asset has pushed DOGE to the $0.155 level.
DOGE price hit the $0.15 level in April 2022 but then fell back and struggled to recover from a multi-year downtrend. The meme coin has recently rallied, however, and now finds itself pushing up against the same level again. Whether or not it can break above on this approach, therefore, will be a key determinant of its next move.
Cardano bites the dust with Dogecoin’s massive rally
Ethereum-killer Cardano, a leading altcoin and previously the eighth largest cryptocurrency by market capitalization slipped from its position after DOGE’s massive comeback.
Dogecoin price doubled within two days, from $0.08 on October 30 to $0.15 on November 1, 2022. The historic rally fueled a bullish sentiment among DOGE holders. Cardano price, on the other hand, remained largely unchanged in the same time period.
On-chain metrics signal the end of Dogecoin’s price rally
Based on data from crypto intelligence platform Coinglass, $30.8 million worth of meme coins were liquidated over the last 24 hours. This number includes Dogecoin, Shiba Inu and other meme coins.
The 24-hour trade volume of Dogecoin climbed 45% overnight. This is an indication that there has been a rise in profit-taking by holders as the asset hits the $0.15 mark for the first time in six months. Santiment data reveals that the number of active addresses holding DOGE is much higher now than it was the last time the meme coin hit $0.15. The same is true for trade volume and on-chain activity in Dogecoin.
Dogecoin Active Addresses over 24 hours
While Dogecoin ranked in the top five social trends for the last four-five days, DOGE finally lost its number one spot and this is considered an indicator of an upcoming price decline.
Delma Wilson, crypto analyst argues that Dogecoin is currently in the liquidity zone between $0.134 and $0.142. Therefore it is not the ideal opportunity to scoop up the meme coin. If Dogecoin price nosedives below the $0.134 level, the analyst believes it could signal the end of the meme coin’s uptrend.
DOGE/USDT price chart
Brian, YouTuber and crypto analyst at Business with Brian has set bullish targets of $0.172 and $0.184 for DOGE. If the bearish thesis is invalidated, the analyst believes Dogecoin price has room for growth. The technical expert retains his bullish outlook citing that the recent decline in DOGE price after hitting $0.15, was accompanied by low trade volume, suggesting weakness amongst bears.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Binance CEO calls CFTC suit “disappointing” as district court halts Voyager $1 billion sale to Binance.US
Voyager’s deal with Binance’s United States entity, Binance.US, faced another hurdle on March 27, the same day that the Commodity Futures Trading Commission (CFTC) went after the crypto exchange. This is the second time in the span of a month that Voyager’s deal has been objected against by the government.
90% of Ethereum supply leaves exchanges as regulators struggle to classify ETH as Security or Commodity
Ethereum is known not only as the second-biggest cryptocurrency but also as the second-generation cryptocurrency. The blockchain not only brought Decentralized Finance (DeFi) to the crypto space but also framed a target on its back following its Proof of Stake transition plan.
This is how EOS holders responded to the network's EVM testnet launch, what to expect this week
The first milestone on the EOS Network Foundation’s roadmap, the completion of the EOS EVM (Ethereum Virtual Machine) code, was achieved on March 22, starting the countdown to the launch of the EOS testnet. Well, it is finally here and the community is elated as it brings them closer to the mainnet release on April 14.
XRP price recovers above $0.44 as court ruling approaches, will Ripple win against the SEC?
XRP price has kept its momentum, flashing green on the one-day timeframe as the countdown to the Ripple vs SEC lawsuit continues. The remittance token is moving in tandem with our prediction last week, soaring by a significant margin to secure a place among the best-performing cryptocurrencies on a one-week timeframe.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.