Home News Can Dogecoin reach $1 in this bullish cycle?

Can Dogecoin reach $1 in this bullish cycle?

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Important facts:
  • Elon Musk has been the main promoter of DOGE and the driver of its price in the last bullish cycle

  • A massive rally would be required for DOGE price to reach such levels.

The price of the largest capitalization memecoin, Dogecoin (DOGE), exploded higher, breaking key levels, increasing bullish expectations in its market.

As seen below, Dogecoin broke resistance today, March 28 $0.20 (USD) which was experienced three weeks ago. By then, the level was the highest in two years since January 2022. With the breaking of this barrierIts price has currently reached 0.22 US dollarsAn area I haven’t seen since late 2021.

Dogecoin price over two years. waterfall: trading view,

Although it later fell slightly to US$0.21, it registered a 17% rise in the last 24 hours. it Ranking it as the highest-growth cryptocurrency of this period Of the 100 with the highest market capitalization in the last 24 hours. This can be seen in the following table.

The prices of the 100 cryptocurrencies with the highest capitalization have increased the most in the last 24 hours. waterfall: coinmarketcap,

This panorama comes amid the return of Bitcoin (BTC), the digital currency by the largest capitalization, to almost US$70,000. With this, it is 4% away from surpassing its all-time high of US$73,700 recorded two weeks ago, which drove the general cryptocurrency market upward.

The merchant is known as Afloud remembered Those who bought Dogecoin only to sell at lower prices to make profits when it returns to the resistance level as has happened now. Similarly, he revealed that, in case of a sharp correction, he would again buy around USD 0.600 and USD 0.137, which are support zones near him, as seen below.

Support and resistance areas. Source: afloud.

Thus, traders Hopefully taking advantage of Memecoin’s volatility to make a profit Given a growing period. “I wouldn’t be surprised to see DOGE at $1 at the end of this bullish cycle,” he said.

In any case, for DOGE to be worth $1, it would have to quintuple its capitalization, which currently stands at $31.17 billion. This would require it to gain more than the third and fourth largest volatile cryptocurrencies BNB and Solana (SOL). Now it is at eighth place in the ranking.

Dogecoin is a memecoin, that is, a cryptocurrency without a defined utility that refers to a meme, making its large capitalization growth difficult. His demand has been strengthened by the support of billionaire businessman Elon Musk, founder of electric car company Tesla.

Hence, it has risen to $1, which was the target 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 Finally the merchant allows payment with Memecoin on his social network X.

In turn, it becomes possible to reach such price targets Bull Run The general proliferation of cryptocurrencies, a phenomenon that has historically occurred due to the greater appetite for demand generated by Bitcoin’s continued growth.

Contrary to this scenario, DOGE is inflationary, meaning that the quantity in circulation is constantly increasing, leading to supply being stronger than demand. This has increased its supply from the all-time high price of $0.75, making it difficult to return to that level. However, it has benefited from the current enthusiasm generated by Bitcoin.

Dogecoin price shows bullish signs

Even though the $1 target may be difficult to see at the moment, the Dogecoin market is currently showing bullish signs. Apart from 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 occurs before an uptrend.

“Cup and Handle” technical pattern completed by DOGE. Source: O. Garcia.

Cryptocurrency technical analyst, Omar Garcia, Said That, given this pattern and the exceeding 0.786 Fibonacci level, the principle to identify potential movements, DOGE price may rise rapidly,

This comes as the creation of Dogecoins, NFTs of the Dogecoin network, and new Dogecoin addresses has increased, indicating greater demand that makes its rise possible. Furthermore, as reported by CryptoNoticias, general interest in memecoins has increased, causing DOGE to improve price levels.

At the moment, 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 like that year, Its next major target could be $0.35A level that then served as a strong resistance.

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