Dogecoin continues to cement itself as the largest meme coin by market cap, occasionally showing signs of renewed enthusiasm. This week, the meme-inspired cryptocurrency added more than $1 billion to its market cap, making it the 8th largest cryptocurrency. This was the result of Dogecoin’s surge of more than 10%, pushing its market cap to more than $10 billion in a matter of hours.
Dogecoin pushes Solana to number 9
Dogecoin has come a long way since its creation as a joke. Fueled by social media hype, the meme cryptocurrency has skyrocketed in the rankings to become the 8th largest cryptocurrency by market capitalization. Dogecoin price recently crossed the $0.070 resistance level to reach $0.076. As a result, more than $1 billion was added to the market cap, from $9.67 billion to $10.66 billion.
Although the price has now dropped to $0.074 at the time of writing, Dogecoin still has a market cap of $10.35 billion, pushing Solana to the No. 9 spot. On the other hand, Solana is down 7% in the space of 7 days and has lost more than $1.4 billion in market cap.
What pushes the price?
Much of Dogecoin’s past success has mainly come from social media hype and a few influential people and groups praising it. A major influence is billionaire Elon Musk. Since Musk started tweeting about the meme coin, Dogecoin has gained more attention from crypto investors and his tweets praising the crypto have led to major spikes in interest and price.
DOGE price retraces to $0.73 following 10% surge | Source: DOGEUSD on Tradingview.com
The latest spike in Dogecoin’s price appears to have stemmed from rumors that Tesla is keeping the cryptocurrency in its payment page source code. Dogecoin is the second cryptocurrency accepted by the automaker after Tesla added Bitcoin as an option in 2021. However, Tesla has since discontinued the option to pay with Bitcoin and removed the option from its payment page source code.
At this time, Tesla has removed “bitcoin” from its payment page source code, but still retains “dogecoin”. pic.twitter.com/BQrRtuTN8Z
— Wu Blockchain (@WuBlockchain) July 21, 2023
DOGE Price Prediction
Dogecoin (DOGE) is currently trading at $0.07378, ranging between $0.065 and $0.075 for the past week. If the $0.075 resistance is broken, we could see DOGE rise to its February price of $0.096.
Interestingly, the asset has bounced off the $0.060 support level multiple times since August 2022, making it a key support for the meme coin. So a break below $0.060 could send DOGE down to its lowest point in more than a year.
While Dogecoin lacks the scarcity of Bitcoin or the smart contract capabilities of Ethereum, it has gained an enthusiastic community of supporters and has become relatively stable over the years. However, Dogecoin is still a highly volatile investment and its value is largely based on social media hype rather than real-world utility.
Featured image from iStock, chart from Tradingview.com