Dogecoin Jumps 6%, Overtakes Ethereum And XRP

In a crypto market sometimes lulled by power struggles between altcoins and regulators, an unexpected roar has awakened the pack. Dogecoin, the most famous of the memecoins, is back in the spotlight with a 6% surge, outrunning ethereum and XRP. This rebound, after a period of dormancy, seems to prove wrong those who relegated memecoins to the status of mere digital jokes. Much like a beast thought to be docile but showing its fangs.

Dogecoin Outperforms the Market Giants

On May 1st, the DOGE price was moving around $0.1810, marking a nearly 6% increase over 24 hours. During this period, Ethereum and XRP did not keep pace, leaving Dogecoin to earn the label of “altcoin of the day“. However, trading volume dropped by 11%, suggesting that this rise happened quietly. No matter: “Dogecoin is forming higher and higher lows“, announced an analyst.

Overall, it is preparing to stabilize above $0.19. Analyst Thomas Anderson mentions a “rising wedge formation” on the 30-minute chart, a pattern often signaling sharp increases. If DOGE crosses the $0.22 mark and its 200-day moving average, the path will be clear.

Whales and ETFs to Stoke the Flames

Confidence is returning, and crypto whales are not mistaken. The sudden accumulation of Dogecoin evokes bullish precedents. According to Ali Martinez, this type of movement “often precedes significant price increases“. Another catalyst: persistent rumors surrounding a Dogecoin ETF. 21Shares claims the memecoin “is no longer just a joke“, and their simulations show a notable improvement in portfolios integrating 1% DOGE.

Bloomberg even estimates an 80% probability of such an ETF being approved this year. If this materializes, institutional interest could propel DOGE to new heights.

Technical Analysis: Toward an Imminent Breakout?

Technical indicators also suggest a trend reversal. The tweet from @TATrader_Alan reinforces this view:

The current OBV pattern on DOGE/BTC reflects that seen before the October 2024 rally.

The indicators therefore point to a possible breakout. However, obstacles remain. DOGE must first reclaim the $0.22 level, which corresponds to its 200-day exponential moving average. If it fails, a correction to the $0.13 to $0.10 zone may occur. But if history repeats itself, a significant increase in trading volume could fuel another price surge for the memecoin.

In conclusion, Dogecoin is not alone in rekindling the flame. BONK, another notorious memecoin, recently showed it also counts among the attendees with a 60% increase in one week. Skeptics who judged the memecoin era over may have to swallow their cynicism. In the crypto universe, the stage remains open, and Dogecoin, the old market comedian, seems ready to improvise a new act.