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Dogecoin (DOGE) has reclaimed a key psychological threshold, trading above $0.20 for the first time in months as Bitcoin’s explosive breakout above $100,000 reignites momentum across the Proof-of-Work (PoW) sector.
Dogecoin, long seen as a barometer of investor sentiment and speculative appetite, has surged over 14% in 24 hours, outperforming stalwart PoW assets like Litecoin (LTC) and Bitcoin Cash (BCH), and confirming its status as a top contender during risk-on rallies.
Bitcoin’s milestone rally has infused the broader crypto market with renewed optimism, adding over $123 billion in inflows to the PoW sector alone and pushing its total valuation to $2.11 trillion, according to Coingecko data.
While Bitcoin (BTC) has captured the lion’s share of the new capital, Dogecoin’s performance stands out as it added $4.2 billion to its market cap, rising to more than $30 billion and ranking eighth among all cryptocurrencies by market capitalisation.
Why is Dogecoin rising?
Besides Bitcoin’s breakout past $100K, Dogecoin’s price surge has also coincided with a remarkable spike in 24-hour trade volume, which soared to $2.93 billion — a 125% increase — underscoring a surge in retail and speculative participation.
Dogecoin’s ascent is being driven not only by Bitcoin’s strength but also by an uptick in community engagement and bullish momentum from memecoin peers like PEPE and Fartcoin, both of which posted even larger gains during the same period.
This resurgence has also been fueled by macroeconomic tailwinds, including expectations that the US Federal Reserve could cut interest rates soon — a scenario typically bullish for speculative assets like DOGE.
The recent decision by US regulators to allow federally regulated banks to offer crypto custody and trading services has further amplified bullish sentiment, laying the groundwork for more institutional access to digital assets.
Despite its inflationary supply model, Dogecoin continues to attract both long-term holders and short-term traders, many of whom are drawn to its volatility, strong community presence, and iconic branding.
An influx of whale accumulation in March, totalling 1.7 billion DOGE, has also been viewed as a leading indicator of the current price rally, as large players historically accumulate before breakout moves.
Derivatives markets have also reflected this bullish tilt, with DOGE futures volume spiking to $6.23 billion and open interest climbing to $2.21 billion according to Coinglass data.
Long/short ratios on Binance and OKX show a pronounced long bias, with top trader positions as high as 3.67, suggesting confidence in further upside from institutional and high-volume participants.
Dogecoin price prediction: path to $0.30 or profit-taking ahead?
Crypto analyst Ali Martinez recently predicted that Dogecoin could rally to $0.30, implying a 57% upside from current levels if momentum persists and resistance levels are broken.
This trendline has supported #Dogecoin $DOGE since October 2024. A dip to $0.14 could present a buying opportunity ahead of a potential rebound to $0.30. Join me in this trade by signing up to @coinexcom using my referral link coinex.com/s/46JX
The memecoin has not touched the $0.30 level since early February, and if it reclaims that ground, it would signal a strong bullish continuation in alignment with broader market sentiment driven by Bitcoin’s trajectory.
Some traders believe that if Bitcoin breaches its all-time high, altcoins like DOGE could experience a cascading rally, particularly given the current enthusiasm across the memecoin sector.
However, the memecoin’s volatility and inflationary tokenomics still present risks, especially in scenarios where macroeconomic sentiment shifts or Bitcoin stalls near resistance at the $100,000 level.
The $0.22 and $0.27 zones are seen as immediate resistance, with strong support expected around $0.17; a break below that could signal a reversal, while a decisive close above $0.27 could ignite a move toward $0.30 and beyond.
Despite the speculative nature of its recent gains, Dogecoin’s breakout above the 50-day exponential moving average and its sustained positioning above short-term support levels indicate bullish control, at least for now.
While the money flow index suggests overbought conditions that warrant caution, sentiment remains firmly in favour of a continued rally, particularly as discussions around a potential Dogecoin ETF and utility developments like DogeOS begin to gain traction.
As May unfolds, Dogecoin’s price path remains tied to a complex mix of market psychology, macroeconomic catalysts, and community-driven hype, a cocktail that has historically driven some of its most explosive rallies.
The post Dogecoin tops $0.20 amid Bitcoin-led rally in PoW crypto sector appeared first on Invezz
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