Dogecoin hit $60b market cap; can it reach new all-time high?

Dogecoin, the original meme coin, has surged remarkably in November, outperforming many top-tier crypto assets in the ongoing bull run.

Over the past week alone, Dogecoin (DOGE) has witnessed a massive rally, climbing by an impressive 143%. This move has positioned Dogecoin as the standout gainer in a bullish market environment. 

Notably, the recent upward movement has been supported by influential developments in the broader market, including political events, such as the U.S. presidential election in which Donald Trump, supported by the billionaire Tesla CEO Elon Musk, claimed victory on Nov. 6. 

These events fueled DOGE’s rise, helping it overcome temporary resistance on Nov. 7 and resume its rally on Nov. 8, ultimately reaching $0.40 — an impressive level not seen since June 2021.

Dogecoin is up by 54% in the last 24 hours and is trading at $0.428 at the reporting time. Amid the run, its market cap has crossed the $60 billion mark, currently sitting at $62 billion, a peak last seen in May 2021. DOGE is now the sixth-largest crypto asset.

DOGE 1D chart | Source: crypto.news

Retail holders drive DOGE

According to data from Santiment, a significant portion of this surge has been driven by smaller, retail wallets. 

Over the past month, nearly 75,000 new wallets holding less than 100,000 DOGE have emerged. Conversely, large holders have reduced their positions by a net count of 350 wallets, although 108 of these large wallets re-entered the market just before the latest move above $0.40. 

This indicates that while retail enthusiasm has pushed prices higher, sustained growth might require continued participation from larger investors.

Dogecoin overbought but optimism persists

The upsurge has allowed Dogecoin to break through the upper Bollinger Band, currently set at $0.3384, with a 20-day moving average at $0.1939 and the lower Bollinger Band at $0.0494. 

This breakout indicates that DOGE’s price has moved significantly outside its typical volatility range, which can signal an overextended market. 

In addition, the Commodity Channel Index has reached 293, suggesting that Dogecoin is firmly in overbought territory. Additionally, its Relative Strength Index stands at 93.36, a level not seen since March 2024, hinting at a potential period of consolidation or a pullback.

Dogecoin has overcome multiple resistance points. If bulls can maintain this momentum, the next targets could be around $0.50 and beyond. However, a failure to hold above $0.40 might lead to corrections towards the 0.236 Fibonacci level at $0.353 or a steeper drop to $0.312 and $0.280.

Can DOGE reach ATH?

Dogecoin’s further bullish expectations vary from each analyst’s perspective.

Despite the overbought conditions, analyst Ali Martinez highlights potential upside targets. According to Martinez, DOGE could test the middle or upper boundary of a long-term ascending channel, putting potential price levels at $2.40 or even $18 if bullish momentum remains intact. 

Similarly, crypto analyst Crypto Kaleo suggested that this rally is still in its early stages, forecasting potential moves to $0.50 and beyond, with $1 as a major milestone.