The meme coin market has experienced significant growth recently, fueled by Bitcoin’s surge towards $90,000. It has been a remarkable week for cryptocurrencies, with the leading market player hitting new highs, the most recent peak occurring just hours ago. With Elon Musk’s recent interactions with the president-elect and his prominent role in the newly proposed Department of Government Efficiency (D.O.G.E), Dogecoin’s price is setting its sights on $1 following a weekly surge of over 100%.
Dogecoin Attracts Intense Buying Pressure
Dogecoin (DOGE) has maintained its strong upward trajectory for the fourth consecutive day, climbing by 48% in the last 24 hours, sparking discussions about the potential of the coin reaching a $1 price target.
DOGE surpassed 41 cents early on Tuesday, marking its highest level since May 2021 when it peaked at just over 70 cents. Over the past week, the cryptocurrency has delivered a return of more than 103% to investors and nearly tripled in value over the last 30 days, according to data.
Coinglass data reveals that DOGE saw over $131 million in total liquidations. These liquidations were the most significant for the dog-themed cryptocurrency this year, with open interest approaching an all-time high set in April.
The current rally has been largely driven by the positive sentiment surrounding tech entrepreneur Elon Musk’s influence during the Trump administration.
In recent days, whale activity for Dogecoin has surged as large transaction volumes have increased over the last 48 hours. IntoTheBlock data indicates that whale transaction volume has risen from a low of $2.7 billion to a recent peak of $16.4 billion, boosting trading volume.
Interestingly, Coinmarketcap data shows that the total market capitalization of meme coins has doubled in the past week, soaring from $55 billion to $112.3 billion on November 12. This figure is 25% higher than the previous high of $90 billion achieved during the bull run.
Year-to-date, the combined market value of cryptocurrencies in this category has surged by almost 400%.
What’s Next for Dogecoin?
Dogecoin has seen a significant uptrend in recent days, gaining momentum after breaking through the $0.25 resistance level. However, sellers have strongly defended the $0.44 level, resulting in a strong rejection. Currently, DOGE is trading at $0.39, up over 1.6% in the last 24 hours.
The long wick on the November 11 candlestick suggests that bears are trying to halt the ascent at $0.44. If buyers can maintain their position against the bears, the DOGE/USDT pair may continue its ascent towards $0.4. Buyers have successfully defended the $0.34 level, triggering a strong rebound.
However, if buyers struggle to push the price above $0.4, a correction could ensue, potentially pulling the pair back to $0.32 and possibly retesting the breakout level at $0.25. It will be crucial for buyers to defend this level to sustain the upward momentum.
