The cryptocurrency market is now experiencing increased demand for short-term Dogecoin (DOGE), signaling a likely trend reversal following recent adverse market occurrences.
Specifically, Dogecoin is contemplating overtaking Avalanche (AVAX) market valuation, which might alter its market position.
Dogecoin is now ranked 10th with a market capitalization of US$11.32 billion, whereas Avalanche is ranked 9th with a market capitalization of US$11.74 billion, representing a tiny difference of US$420 million.
Dogecoin lost ground to AVAX in December, and this development follows that. The question today is whether DOGE can sustain its purchasing pressure and maybe reverse AVAX.
DOGE Price Prediction
According to a Blockchainpedia analysis, the Dogecoin price has been consolidating in recent weeks, trading in a small range between US$0.07 and US$0.08. This narrow range signals a stalemate, with both bulls and bears looking for a catalyst to break the impasse. To launch a rally and overcome AVAX, Dogecoin must perform above the critical US$0.07 mark.
If DOGE is able to break the US$0.080 mark, it will open the door to another high, perhaps hitting US$0.09 and even nearing US$0.1 after breaking the US$0.085 resistance.
However, a correction might cause Dogecoin to go below US$0.07. The major aspect driving this price change is Dogecoin ability to continue its upward momentum.
Although Dogecoin normally follows market trends, exogenous influences, particularly Elon Musk, continue to have a significant impact. Musk, Dogecoin primary proponent, has the ability to validate optimistic sentiment and drive the price of this key memecoin upward.
The attention on Dogecoin grew once X opened a dedicated X Payments account, broadening the token potential applications. This development spurred a surge, putting DOGE among the top cryptocurrencies.
Positive mood like this, paired with Musk-related events, is likely to drive up interest in Dogecoin, potentially raising its market value and paving the door for it to exceed AVAX.
As of January 28, 2024, Dogecoin was trading at US$0.08, up 3 percent on the day and 3.6 percent on the week. However, technical signs point to a relatively negative DOGE price projection.
The summary is leaning towards a sell signal at 11, with the moving average supporting a strong sell recommendation at 11, and the oscillator leaning toward a buy signal at 2.
