Dogecoin hit $60b market cap; can it reach new all-time high?

Dogecoin, the original meme coin, has seen a notable increase in November, outperforming many top crypto assets in the ongoing bull run.

In the past week alone, Dogecoin (DOGE) has witnessed a massive rise, rising an impressive 143%. This move positioned Dogecoin as a standout gainer in a bullish market environment.

The recent upward move has been supported by influential developments in the broader market, including political events such as the US presidential election, in which Donald Trump declared victory on November 6, supported by billionaire Tesla CEO Elon Musk.

These events accelerated DOGE’s rise, allowing it to overcome temporary resistance on November 7 and continue its rise on November 8, reaching $0.40, an impressive level not seen since June 2021.

Dogecoin is up 54% in the last 24 hours and is trading at $0.428 at the time of reporting. Midway through the run, its market capitalization surpassed $60 billion and currently stands at $62 billion, a peak last seen in May 2021. DOGE is currently the sixth largest crypto asset.

DOGE 1D chart | Source: crypto.news Retail owners use DOGE

According to data from Santiment, a significant portion of this increase was driven by smaller retail wallets.

🐶📈 Regardless of your take on meme coins, it has been impossible to ignore the ascension of crypto's top meme coin. In the past 4 weeks, there have been 74,885 more wallets holding less than 100K DOGE.

Meanwhile, shark and whale wallets are declining during this time, with a… pic.twitter.com/MNmJVvKfbj

— Santiment (@santimentfeed) November 12, 2024

Approximately 75,000 new wallets with less than 100,000 DOGE have emerged in the past month. In contrast, large wallet holders reduced their positions by a net 350 wallets, but 108 of these large wallets re-entered the market just before the last move above $0.40.

This suggests that retail enthusiasm is driving prices higher, but sustainable growth may require continued involvement from larger investors.

Dogecoin is overbought but optimism remains

The rise allowed Dogecoin to break the upper Bollinger Band currently set at $0.3384, the 20-day moving average at $0.1939, and the lower Bollinger Band at $0.0494.

This breakout indicates that the DOGE price has moved significantly outside its typical volatility range, which could be a signal of an overextended market.

Additionally, the Commodity Channel Index reaching 293 shows that Dogecoin is in the overbought zone. Additionally, the Relative Strength Index stands at 93.36, a level not seen since March 2024, indicating a potential period of consolidation or pullback.

Dogecoin has overcome multiple resistance points. If the bulls can maintain this momentum, the next targets could be around $0.50 and above. However, a failure to hold above $0.40 could lead to corrections from the 0.236 Fibonacci level towards $0.353 or a steeper decline towards $0.312 and $0.280.

Can DOGE reach ATH?

Dogecoin’s bullish expectations vary depending on each analyst’s perspective.

Despite the overbought conditions, analyst Ali Martinez highlights potential upside targets. According to Martinez, DOGE could test the middle or upper bound of a long-term ascending channel, putting potential price levels at $2.40 or even $18 if the bullish momentum remains intact.

Similarly, crypto analyst Crypto Kaleo suggested that this rally is still in its early stages and foresees potential moves towards $0.50 and beyond as a key $1 milestone.