The meme coin sector has seen significant recent growth, driven by Bitcoin's surge to $90,000. This has been an impressive week for cryptocurrencies, with the leading coin reaching new highs, the latest peak occurring just a few hours ago. With Elon Musk's recent interactions with the president-elect and his leadership role in the newly proposed Department of Government Efficiency (DOGE), the price of Dogecoin is heading towards the $1 mark after rising over 100% in the week.
Dogecoin attracts strong buying pressure
Dogecoin (DOGE) has maintained a strong upward trend for the fourth consecutive day, rising 48% in the past 24 hours, sparking discussions about the possibility of this coin reaching a price target of $1.
DOGE surged past the 41 cent mark on Tuesday morning, marking the highest level since May 2021, when it peaked just above 70 cents. In the past week, this cryptocurrency has delivered over 103% profit to investors and nearly tripled in value over the past 30 days, according to data.
Data from Coinglass indicates that DOGE has experienced over $131 million in total liquidations. These liquidations are the most significant for the dog-themed cryptocurrency this year, with open interest reaching an all-time high set in April.
The current surge is largely driven by positive sentiment surrounding the influence of tech entrepreneur Elon Musk under the Trump administration.
In recent days, whale activity for Dogecoin has also surged as large trading volumes have increased over the past 48 hours. Data from IntoTheBlock shows that whale trading volume has risen from a low of $2.7 billion to a recent peak of $16.4 billion, creating a boost in trading volume.
Interestingly, Coinmarketcap shows that the total market capitalization of memecoins has doubled in the past week, skyrocketing by $55 billion to $112.3 billion on November 12. This value is 25% higher than the previous high of $90 billion reached during the bull run.
As of now, the total market value of cryptocurrencies in this category has increased by nearly 400%.
What is the next step for Dogecoin?
Dogecoin has experienced a significant upward trend in recent days, accelerating after breaking through the resistance level of $0.25. However, sellers have strongly defended the $0.44 level, creating a strong rejection. As of the time of writing, DOGE is trading at $0.39, up more than 1.6% in the past 24 hours.
The long wick on the candle from November 11 indicates that the bears are trying to halt the increase at $0.44. If the bulls can maintain their position against the bears, the DOGE/USDT pair could continue to rise to $0.4. Interestingly, the bulls successfully defended the $0.34 level, creating a strong rebound.
However, if buyers struggle to push the price above $0.4, a correction may occur, potentially pulling this pair down to $0.32 and possibly retesting the breakout level at $0.25. Buyers will need to defend this level to maintain the upward momentum.