Leading meme coin Dogecoin (DOGE) has experienced significant price increases over the past few days. It is currently trading at $0.28, having recorded a price increase of 88% over the past seven days.
This significant uptrend has allowed DOGE to overtake Ripple’s XRP in terms of market capitalization. With buying pressure increasing, the meme coin is poised to increase its profits. Here’s why.
Dogecoin overtakes XRP
At its current value, Dogecoin is trading at its highest price since December 2021, up an impressive 25% in the last 24 hours. This growth brought XRP’s market capitalization to over $42 billion, surpassing XRP’s $37 billion valuation.
On November 6, DOGE surpassed XRP in market capitalization for the first time. Donald Trump’s 2024 US election victory sparked a double-digit jump in DOGE’s value, with it rising 25% in one session to reach a one-month high of $0.211.
This growth briefly allowed DOGE to take seventh place in the market ranking, overtaking Ripple’s XRP. However, when profit-taking began, XRP quickly regained its position, pushing DOGE back into the rankings.
With renewed demand for the meme coin, DOGE regained the seventh spot, pushing XRP below it.
DOGE is ready for more
BeInCrypto’s assessment of the DOGE/USD one-day chart suggests a sustained rally is likely. The meme coin’s Super Trend indicator confirms this bullish forecast. At the time of writing this article, the green line of this indicator is below the DOGE price.
The Super Trend indicator tracks the overall direction and strength of an asset’s price trend. It shows a green line during an uptrend and a red line during a downtrend.
When the green line is below the asset price, as it is now with meme coin, it signals a bullish outlook, hinting that Dogecoin’s price surge may have more room to continue.
Additionally, DOGE’s moving average convergence/divergence (MACD) indicates the significant bullish bias it currently possesses. At the time of publication, the MACD line (blue) is above the signal line (orange).
When the MACD line is above the signal line, it indicates a bullish trend and suggests that momentum may continue to push the asset price higher.
DOGE Price Forecast: Profit taking is fraught with risks
DOGE is currently trading at $0.28, just below the $0.31 resistance level. Sustained demand for the meme coin may soon overcome this crucial barrier. A successful breakout here would pave the way for Dogecoin’s price to surge to $0.39, the high last seen in June 2021.
However, if profit taking increases, Dogecoin could lose some of its recent gains and potentially fall to $0.19. Failure to establish support at this level could result in a deeper decline, with DOGE falling to $0.09.
