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

Dogecoin, the original meme coin, has experienced a remarkable surge in November, outperforming many top-tier cryptocurrencies in the ongoing bull run.

Over the past week, Dogecoin (DOGE) has seen a massive rally, climbing by an impressive 143%. This surge has positioned Dogecoin as one of the standout performers in the bullish market environment.

A key factor in this rise has been developments in the broader market, including political events. Notably, the U.S. presidential election, in which Donald Trump, backed by Tesla CEO Elon Musk, claimed victory on November 6, provided a catalyst for DOGE’s rally.

This political momentum helped Dogecoin overcome temporary resistance on November 7, and it resumed its rally on November 8, ultimately reaching $0.40—its highest price since June 2021.

At the time of reporting, Dogecoin is up by 54% in the last 24 hours and is trading at $0.428. Its market capitalization has crossed the $60 billion mark, currently sitting at $62 billion—its highest level since May 2021. DOGE is now the sixth-largest cryptocurrency by market cap.

Retail Holders Drive DOGE Surge

Data from Santiment reveals that a significant portion of Dogecoin’s recent surge has been driven by smaller, retail investors. Over the past month, nearly 75,000 new wallets holding less than 100,000 DOGE have been created, contributing to the coin’s impressive rally.

In contrast, larger holders have been scaling back their positions, with a net decrease of 350 large wallets. However, 108 of these large wallets re-entered the market just before DOGE surpassed the $0.40 mark, suggesting that institutional or whale investors are starting to take notice of the price action.

This trend indicates that while retail enthusiasm is a major factor behind Dogecoin’s current price rise, the continued growth and sustainability of the rally may depend on sustained participation from larger investors.

Dogecoin Overbought but Optimism Persists

Dogecoin’s recent surge has driven its price above the upper Bollinger Band, currently set at $0.3384, signaling a significant breakout. With the 20-day moving average at $0.1939 and the lower Bollinger Band at $0.0494, this breakout indicates that DOGE is trading far outside its usual volatility range, a sign that the market may be becoming overextended.

The Commodity Channel Index (CCI) has surged to 293, which suggests that Dogecoin is in overbought territory. Additionally, the Relative Strength Index (RSI) stands at 93.36, the highest level seen since March 2024, further signaling that the asset may be due for a period of consolidation or a potential pullback.

Despite these indicators of overbought conditions, Dogecoin has managed to break through several key resistance levels. If the bullish momentum continues, the next targets for DOGE could be $0.50 and higher. However, if the price fails to hold above $0.40, a correction could occur, with potential support levels around the 0.236 Fibonacci retracement at $0.353, or deeper drops to $0.312 and $0.280.

The market remains optimistic, but caution is warranted as Dogecoin faces the possibility of a short-term correction.

Can DOGE reach ATH?

Dogecoin’s further bullish expectations differ based on each analyst’s viewpoint.

Despite the overbought conditions, analyst Ali Martinez points out potential upside targets. According to Martinez, if bullish momentum persists, DOGE could test the middle or upper boundary of a long-term ascending channel, with potential price levels reaching $2.40 or even $18.

Similarly, crypto analyst Crypto Kaleo has suggested that this rally is just beginning, predicting potential moves toward $0.50 and beyond, with $1 as a significant milestone.