DOGE Price Rally: Can Dogecoin Beat XRP in Market Cap Race?

- Advertisement -

• The surge brings Dogecoin close to surpassing XRP, with market caps at $32.8 billion and $28 billion, respectively.
• Over $5 million in Dogecoin shorts were liquidated in 24 hours, contributing to a high trading volume of $2.3 billion.

Recently, Dogecoin (DOGE), saw its value increase by more than 10%, data from Coinmarketcaps indicates.

This surge brought its price to a peak of $0.1975 before stabilizing at $0.195. Among the leading cryptocurrencies, Dogecoin surpassed Shiba Inu (SHIB) in performance, ranking fifth in 24-hour gains after Ethena (ENA), Fantom (FTM), ORDI (ORDI), and eCash (XEC).

This increase positions Dogecoin closer to overtaking XRP in terms of market capitalization. In the last 24 hours, XRP experienced a modest gain of 0.9%. Market valuations for Dogecoin and XRP currently stand at $32.8 billion and $28 billion, respectively, as per Coinmarketcap. 

Additionally, more than $5 million worth of Dogecoin short positions were liquidated in the last day, according to CoinGlass, constituting the majority of the total $6.42 million in liquidated positions. 

Dogecoin also saw trading activity, with a 24-hour volume of $2.3 billion.

Related: Dogecoin Analysis: MVRV Ratio Indicates Bullish Momentum Ahead

Dogecoin managed to close the month above the critical $0.20 mark, potentially setting this price as a support level for future increases, possibly up to $0.30. Since the beginning of 2024, Dogecoin’s price has doubled, and the collective market value of meme-centric cryptocurrencies has nearly tripled. 

However, IntoTheBlock’s recent analysis shows Dogecoin exhibiting primarily negative on-chain metrics, particularly in net network growth and large transaction indicators.

The current trend reflects a growing interest in high-risk investments among traders, with memecoins like Dogecoin at the forefront due to their speculative nature. Unlike traditional investment assets, memecoins are known for their volatility.

The broader financial sector sees the U.S. dollar declining against a collection of major foreign currencies. The U.S. Dollar Index (DXY) suggests an inverse relationship between Dogecoin and the dollar, indicating the former’s attractiveness as an investment increases as the dollar weakens, as observed on April 6.

Read more: Elon Musk’s Commitment to Dogecoin: Fueling Price Momentum and Integration Speculation

A lot of trading activity was noted, with Whale Alert reporting an anonymous purchase of 199.27 million DOGE from Robinhood, valued at approximately $35.45 million.

🚨 99,278,179 #DOGE (17,682,842 USD) transferred from #Robinhood to unknown wallethttps://t.co/m46QE6eTnE

— Whale Alert (@whale_alert) April 5, 2024

Despite this influx, the reduction in Dogecoin ‘whales’ suggests a reassessment of these transactions’ impact on the market.

🚨 100,000,000 #DOGE (17,771,289 USD) transferred from #Robinhood to unknown wallethttps://t.co/aGFP71LF36

— Whale Alert (@whale_alert) April 5, 2024

Markets for Dogecoin show a decrease in both open interest and funding rates for its perpetual contracts, pointing to a possible decline in trader engagement due to profit-taking or reduced exposure.

From a high of $2.21 billion on March 29, open interest fell to $1.38 billion by April 6. Additionally, the funding rate decreased, indicating less enthusiasm for maintaining long positions.

Dogecoin’s recent price rally, supported by its 200-4H exponential moving average and an ascending trendline, hints at the potential for continued price increases, following a pattern that previously resulted in an 85% price surge.

The current price of Dogecoin (DOGE-USD) is approximately $0.206608, marking an increase of $0.008424 or 4.25% from its previous close. The price range for today has been between $0.196128 and $0.207948.