Dogecoin (DOGE) started the week on a sour note with a minor drop to a support level of $0.183 on Tuesday, before Bitcoin (BTC), the leading cryptocurrency, continued its upward streak from last week, surpassing $70,000.
Rise of Meme Tokens
The bullish outlook seems to be spreading across the crypto market, with certain altcoins like Internet Computer (ICP) leading the charge. Ethereum (ETH) and Solana (SOL) are not far behind, showcasing their potential with rises to $3,588 and $192 respectively. Dogecoin, the largest meme token, plays a significant role in shaping the future of this crypto category, with a market cap of $26.5 billion and ranking ninth among other tokens.
Despite a 3% increase in DOGE’s price on Monday, there was a 6% decrease in the 24-hour trading volume, which could indicate a decrease in interest among traders. Other meme tokens like Shiba Inu (SHIB) and dogwifhat (WIF) are also on the move, with respective increases of 6% and 18%. Bonk, another Solana-based meme token, was trading at $0.000025, up 9% at the time of writing.
Critical Formation in DOGE’s Price
Meme token investors are often influenced by the excitement that can lead to explosive price increases, and this bull run is no different. Interest in Dogecoin during bull runs could drive people towards SHIB, WIF, BONK, and other lesser-known tokens to maximize profits. Dogecoin’s price is currently above three key bullish indicators: the 20-day Exponential Moving Average (EMA), the 50-day EMA, and the 200 EMA.
Additionally, it is trading above the previous day’s opening level of $0.1766, which could signal a sustainable uptrend. The recently confirmed golden cross, with the 20-day EMA crossing above the 50-day EMA, further supports the bullish thesis. This pattern strengthens the upward outlook and could encourage investors to take on more long positions in DOGE.
