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Dogecoin (DOGE), the king of meme coin, is showing promise as it matches Bitcoin (BTC), the leading digital currency in price growth. According to CoinMarketCap data, Dogecoin has recorded an over 7% increase in price, just as Bitcoin posted 4% growth.
Major resistance levels still in sight for DOGE
In the last 24 hours, Dogecoin has outperformed Bitcoin, possibly driven by community sentiment and market dynamics. The bullish rally with Bitcoin could also have contributed to the soaring increase witnessed by the meme coin.
DOGE climbed from a low of $0.2234, supported by the ecosystem, to its current level. As of press time, DOGE's price is changing hands at $0.2439, representing a 7.63% increase within this period.
Meanwhile, the Securities and Exchange Commission's (SEC) move to delay its decision on exchange-traded funds (ETFs) has not dampened investor sentiment.
Dogecoin has seen a spike in its trading volume by 57.95% to $3.18 billion. This suggests that traders are optimistic about further growth and might support the meme coin in moving to higher levels.
However, whether the current rally could push DOGE into the big breakout it is looking for remains uncertain.
Notably, DOGE has several resistance levels to confront, including $0.26, $0.28 and $0.30. To avoid rejection at any of these price levels, the meme coin must overcome volatility and stay consistent in its current momentum.
Breakout possible, but not guaranteed
The Dogecoin ecosystem might need ecosystem support to prevent the current positive growth from reversing. Generally, a sustained volume boost can trigger price stability, which could attract new investors' attention.
Dogecoin has registered some level of consistency this week in volume, which could be another reason for the current price increase. The meme coin started the week with a 95% increase in trading volume and appears determined to finish the week on a high.
Meanwhile, given that the meme coin is mirroring Bitcoin’s growth, a reversal in the price of Bitcoin could negatively impact its outlook.
Vladislav Sopov
U.Today Editorial Team