As a seasoned cryptocurrency trader and investor with over five years of experience in the market, I have witnessed the rollercoaster ride that digital assets can take. The recent surge of Bitcoin to $100,000 is an exciting development that has brought renewed attention to altcoins like Dogecoin.
As a researcher, I’ve noticed an escalating surge in the altcoin rally, with Bitcoin breaking through the $100,000 mark. Among the coins thriving in this upward trend, meme-inspired cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB) are gracefully navigating the broader market upswing. Currently, DOGE is trading at approximately $0.44 with a 24-hour volatility of 4.6%, while it holds a substantial market cap of $64.48 billion and a 24-hour volume of $17.04 billion. Similarly, SHIB is at around $0.000031, demonstrating a 2.4% volatility over the last 24 hours. It boasts a market cap of $18.40 billion and a 24-hour volume of $5.61 billion.
The total market cap of meme coins has reached $126.58 billion, with trading volumes crossing $33.50 billion over the past 24 hours. Furthermore, the top-performing meme coins over the past 24 hours include Dogecoin, with a 6.64% rise, PEPE
PEPE
$0.000022
24h volatility:
2.7%
Market cap:
$9.07 B
Vol. 24h:
$6.81 B
, with a 5.53% surge, and Shiba Inu, with a jump of 5.28%.
Source: Coinmarketcap
As a crypto investor, I’m witnessing an extraordinary surge in value, particularly with Dogecoin. This digital asset boasts a staggering market capitalization of approximately $64.41 billion, making it a colossal presence in the cryptosphere. In fact, it holds dominance over more than half of the meme coin sector, underscoring its significant influence and popularity within this niche.
Over the last month, Dogecoin has experienced a significant surge of 163%, placing it second only to PEPE’s impressive 158% rise. Meanwhile, Brett’s performance shows a 152% increase, as indicated by its current price of $0.20 with a daily volatility of 0.8%. It has a market capitalization of $2.03 billion and recorded a volume of $171.96 million in the last 24 hours.
Dogecoin Marks Triangle Break, Fails at $0.4655
In the 4-hour chart, the price movement of Dogecoin was confined between two gradually merging trendlines, creating a symmetrical triangle shape. This pattern suggested that the coin’s energy or momentum was being held back and not allowed to move in any significant direction.
Source: Tradingview
Conversely, following a rebound off the local support trend line, Dogecoin’s price has experienced a triangle breakout. Over four successive bullish candles, the price climbed from $0.40 to reach a 24-hour high of $0.4655.
Yet, the upward surge of the triangle breakout for Dogecoin didn’t hold its strength above $0.445, resulting in a swift reversal and the appearance of a long wick. At present, Dogecoin is being traded at $0.43765, challenging the broken resistance line once more.
Additionally, the resistance to a higher price is primarily found at the R1 pivot point of $0.47201. This suggests that there’s an abundant supply of Dogecoins that have previously prevented price increases on multiple occasions over the past fortnight, as the price has dropped after reaching this level nearly thrice.
If the overall market bounces back, the upward trend in Dogecoin (formed as a triangle breakout) might surge past its R1 level, potentially leading to an extended price increase. But for this to happen, Dogecoin needs to close the four-hour period above the $0.445 resistance point.
If the situation arises as described, the projected prices for Dogecoin could reach the R2 and R3 resistance levels, which are approximately $0.50 and $0.55 respectively. The significant support for Dogecoin is found at the center pivot level ($0.41857) and also along the local trendline of support.
Leverage Traders a Reason for Caution?
As a researcher, I’ve noticed an intriguing development in the Dogecoin market. In just a short span, there was a significant price rise, which in turn led to a 12.10% growth in open interest, escalating it to a staggering $3.91 billion. Furthermore, this surge ignited a whopping 48.38% increase in trading volumes, causing them to soar to an impressive $16.38 billion.
Over the last 24 hours, there’s been a surge in optimistic market feelings, but the numbers on liquidations tell a contrasting tale. According to data from CoinGlass, Dogecoin saw a significant loss of approximately $28.06 million in liquidations within this timeframe.
In simpler terms, those betting on Dogecoin to rise (long-side players) lost approximately $16.51 million, while those who bet against it (short-side sellers) lost about $11.55 million. This indicates a stronger downward trend or bearish market. This aligns with the recent price rejections observed in Dogecoin over the last two 4-hour periods.
Top traders’ short-to-long ratio is lower, at 0.46 compared to 0.58 for other top traders. Additionally, the funding rate for Dogecoin has risen from 0.0110% to 0.0537%, indicating a significant increase in the expense associated with maintaining long positions over the past month.
Consequently, there’s a surge in optimistic feelings among Dogecoin investors, causing them to take on more risk with higher levels of borrowed capital.
Will Dogecoin Cross $0.50?
During its ongoing surge, it appears that Dogecoin has made a powerful breakthrough in the past four hours, yet it’s struggling to maintain its pace. This situation suggests a potential short-term reversal, given the high volume of sell-offs and increased borrowing.
With Bitcoin reaching $100K, the increasing investor confidence is likely to ignite a surge in the value of meme coins like Dogecoin. Given its current trajectory, it’s plausible that Dogecoin could exceed $0.50 over both short and long term periods.
For traders focusing on price movements, a close above the $0.445 price level on the 4-hour chart might indicate a good opportunity to purchase.
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2024-12-05 12:28