Key Facts: Elon Musk has been the main promoter of DOGE and driver of its price in the previous bull cycle. It would take a widespread bull run for the price of DOGE to skyrocket to such levels. The price of the largest capitalization memecoin, dogecoin (DOGE), exploded higher breaking key levels, fueling bullish expectations in its market. As seen below, dogecoin broke through resistance today, March 28 of 0.20 dollars (USD) that it experienced three weeks ago. Until then, that level had been its maximum in two years since January 2022. With the breaking of this barrierits price currently reached USD 0.22an area that I had not seen since the end of 2021.
Dogecoin price in more than two years. Source: TradingView. Although it later fell slightly to USD 0.21, it registered an increase of 17% in the last 24 hours. This positions it as the cryptocurrency with the highest rise of this period of the 100 with the highest market capitalization in the last 24 hours. This can be seen in the following table.
Cryptocurrencies with the most price increase in the last 24 hours of the 100 with the highest capitalization. Source: CoinMarketCap. This panorama occurs amid the return of bitcoin (BTC), the digital currency with the largest capitalization, at prices around USD 70,000. With this, it is 4% away from exceeding its all-time high of USD 73,700 recorded two weeks ago, which drove the general cryptocurrency market upward. The trader known as Efloud remembered who bought dogecoin at lower prices to sell when it returns to the resistance taking profits like it happened now. Likewise, he revealed that, in the event of a sharp correction, he will buy again around USD 0.600 and USD 0.137, support zones that he has had, as seen below.
Support and resistance zones. Source: Efloud. In this way, the trader hopes to take advantage of the volatility of memecoin to take profits on the rises while viewing a rising period. “I wouldn't be surprised to see DOGE at $1 at the end of this bull cycle,” she said. In any case, for DOGE to be worth $1, it would have to quintuple its capitalization, which is currently $31.17 billion. It would have to achieve a higher than that of BNB and solana (SOL), the third and fourth largest volatile cryptocurrencies. Now it is eighth in the ranking. Dogecoin is a memecoin, that is, a cryptocurrency without a defined utility that refers to a meme, making its large capitalization increase difficult. Their demand has been fueled by the support of billionaire businessman Elon Musk, founder of the electric car company Tesla. Therefore, its rise to 1 dollar, a goal expected by its enthusiasts since the last bullish cycle, It seems possible if Musk continues to support him. In relation to this, there is expectations that eventually the businessman will allow payments with memecoin on his social network demand generated by the sustained rise of bitcoin. As against this scenario, DOGE is inflationary, meaning that the quantity in circulation constantly grows strengthening supply over demand. That has caused its supply to rise from its all-time high price of $0.75, making it difficult to get back to that level. Although the current enthusiasm generated by bitcoin has benefited it.
There are bullish signs for dogecoin price
Regardless of whether the $1 target is currently difficult to see, the dogecoin market is currently showing bullish signs. In addition to breaking the $0.20 resistance, its price is forming a “cup and handle” technical pattern. As the chart shows, this “V” and “U” shaped movement tends to precede an uptrend.
“cup and handle” technical pattern completed by DOGE. Source: O. García. Cryptocurrency technical analyst, Omar García, said that, given this pattern and the exceeding of the 0.786 Fibonacci level, theory to identify possible movements, DOGE price could quickly move up. This occurs while the creation of Doginals, the NFTs of the Dogecoin network, and new dogecoin addresses has increased, which indicates greater demand that makes its rise possible. In addition to this, as reported by BitcoinDynamic, general interest in memecoins has increased, causing DOGE to recover price levels. At the moment, the memecoin is trading 70% below its all-time high recorded three years ago, in May 2021. If it manages to form support in the current area as it did that year, its next key target could be $0.35a level that worked as a strong resistance then.