TL;DR
- Dogecoin (DOGE) briefly overtook Ripple (XRP) in market cap, fueled by Trump’s election lead.
- Analysts predict further gains, with some targets as high as $0.40 or even $1, despite overbought signals.
Big Win for DOGE Holders
The leading meme coin has been among the top-performing cryptocurrencies lately. Earlier today (November 6), its price soared above the psychological level of $0.20 to reach an eight-month high. In the following hours, it slightly retraced and is currently trading at around $0.19 (per CoinGecko’s data).
Its market capitalization briefly exceeded $30 billion, thus flipping Ripple (XRP) to become the seventh-biggest cryptocurrency. Later, though, the figure plunged to $28.5 billion, and DOGE returned to the eighth spot.
Donald Trump’s lead in the US presidential elections is one apparent factor fueling the meme coin’s rally (and that of the entire cryptocurrency market). The latest data shows that the pro-crypto candidate (according to his promises) is very close to securing an official victory, with his odds of winning reaching 99.6% on Polymarket. Trump even declared victory, while Kamala Harris has yet to concede.
Dogecoin’s bull run has been highly beneficial for investors. According to IntoTheBlock, there are currently no holders underwater, with 89% sitting on some paper profits and 11% being break even.
The picture looked completely different in September 2023, when DOGE was worth around $0.06. Back then, the investments of only 42% of the holders were profitable (on paper).
Ready for Further Gains?
Numerous analysts believe Dogecoin’s bull run is still at its starting point, predicting a substantial price jump in the near future. The popular X user KALEO thinks the valuation may explode to $0.40 as early as this week, while CROW set a target of a new ATH of $1:
IT’S HAPPENING!
And we won’t stop at $1, mark my words $DOGE pic.twitter.com/nt8OOau743
— CROW (@TheCrowtrades) November 6, 2024
Some important on-chain metrics, though, suggest that DOGE might experience a correction in the short term. The Relative Strength Index (which measures the speed and change of price movements), for example, has climbed into bearish territory of over 70.
Such a reading indicates that the asset could be overbought and might be poised for a pullback. On the contrary, an RSI ratio below 30 can be interpreted as a buying opportunity.
