The Dogecoin price rose to an important resistance level as its price action diverged from other cryptocurrencies. DOGE is trading at $0.2590, which is a few points below the intraday high of $0.2725. This price action brings its total market capitalization to more than $33 billion.
DOGE diverges with other cryptocurrencies
Dogecoin price is having a relatively good day even as Bitcoin and other altcoins retreated. After soaring to more than $62,000 during the weekend, Bitcoin has slipped to $60,000.
And as I wrote in my Ethereum price prediction article, there is a likelihood that the second-biggest cryptocurrency in the world will drop by at least 20% in the near term.
These coins have declined as investors wait for the new Bitcoin Exchange Traded Fund (ETF) that will be launched today. Analysts believe that Bitcoin will see some demand in the coming days as institutional investors pile-in.
However, they warn that the benefits of the fund have already been priced in the current price. Besides, Bitcoin has climbed by more than 50% in the past few months and is just a few points below its all-time high.
The Dogecoin is rising as demand for the meme coin rises. There is no major catalyst driving the rally. The only ones I found is that Elon Musk replied to a series of Dogecoin-related questions in Twitter. And in another statement, billionaire Mark Cuban made the case for investing in Dogecoin for fun.
Will Dogecoin price hit $1?
Still, a common question is whether the Dogecoin price will ever reach $1. Fundamentally, there are concerns because Dogecoin is not used for what it was meant for. Like Bitcoin, it is mostly used as an investment asset instead of it being a peer-to-peer currency. Still, Dogecoin has a large community that could push its price significantly higher over time.
The Dogecoin price is trading at $0.2590, meaning that it needs to jump by more than 300% to hit the resistance at $1. While the gap between the current price and $1 is significantly wide a 300% jump is attainable. As to whether it will happen in 2021, I have doubts about that.
Meanwhile, in the near term, we see that the Dogecoin price rose to a double-top pattern at $0.2590 earlier today. This price is also along the 61.8% Fibonacci retracement level. It is also above the 25-day and 50-day moving averages.
Therefore, while a double-top pattern is usually a bearish signal, we can’t rule out a situation where it keeps rising. This view will only be confirmed if it moves above the double-top level.
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