Dogecoin continues to cement itself as the largest meme coin by market cap, showing signs of renewed enthusiasm from time to time. This week, the meme-inspired cryptocurrency added over $1 billion to its market cap, making it the 8th largest cryptocurrency. This was the result of Dogecoin’s rise of over 10%, increasing its market cap to more than $10 billion in a matter of hours.
Dogecoin pushes Solana to #9
Dogecoin has come a long way since its inception as a joke. Fueled by buzz on social media, the meme cryptocurrency has risen up the ranks to become the 8th largest cryptocurrency by market cap. Dogecoin price recently crossed the $0.070 resistance level to reach $0.076. As a result, more than $1 billion was added to its market cap, rising from $9.67 billion to $10.66 billion.
Although its price has now fallen to $0.074 at the time of writing, Dogecoin still has a market cap of $10.35 billion, pushing Solana into 9th place. Solana, on the other hand, is down 7% in a 7-day span and has lost more than $1.4 billion in market cap.
What is driving the price?
A large part of Dogecoin’s past success has come largely from social media hype and a few influential people and groups that have pitched it. A big influence is billionaire Elon Musk. Since Musk started tweeting about the coin meme, Dogecoin has gained more attention from crypto investors, and his tweets praising the crypto have led to huge increases in interest and price.
DOGE price retraces to $0.73 following 10% surge | Source: DOGEUSD on Tradingview.com
The recent spike in the price of Dogecoin appears to have stemmed from rumors that Tesla has stored the cryptocurrency in the source code of its payment site. Dogecoin is the second cryptocurrency to be 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 deleted the option in the source code of its payment page.
Currently, Tesla has deleted “bitcoin” from the source code of its payment page, 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 from $0.065 to $0.075 for the past week. If the $0.075 resistance is broken, we could see DOGE rally to the February price of $0.096.
Interestingly, the asset has rebounded multiple times from the $0.060 support level since August 2022, making it an important support for the meme coin. So a break below $0.060 could send DOGE down to its lowest point in over a year.
While Dogecoin lacks the sophistication 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 very 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