The Dogecoin price has broken out as meme stocks jump. DOGE has jumped by more than 35% in the past 24 hours, beating other majors like Bitcoin, Cardano, and Ethereum that have gained by less than 10%. The coin is up by more than 95% from its lowest level on May 21. It has a market capitalization of more than $56 billion.
Era of Memes
As I wrote earlier today, the Dogecoin price has jumped mostly because of the performance of the so-called meme stocks. These are previously hated companies that have found love in social media platforms like Wall Street Bets.
Today, meme stocks like AMC Entertainment, Build-a-Bear, Blackberry, and GameStop have all jumped. AMC stock is up by more than 21% while GameStop has risen by more than 1% after rising by more than 12% yesterday. The two are up by more than 300% and 145%, respectively in the past three months.
The companies have done reasonably well even as they face significant challenges. For example, GameStop is in an industry that is fading even as it pivots to online game downloads.
Dogecoin is seen as a posterchild of memes in the cryptocurrency industry. The Dogecoin price has surged by more than 18,400% since December last year, becoming the best performing cryptocurrency in the world. It has also surged to become the sixth-biggest digital currency in the world.
DOGE also rallied as hopes of a Coinbase listing rose. The company said that it will add Dogecoin to Coinbase Pro, a platform that is designed for more institutional investors.
Dogecoin is a cryptocurrency that was started as a joke and is now popular among day traders. It has also become a good means of tipping especially now that many restaurants have started to open. So, what next for the Doge price?
Dogecoin price prediction
Turning to the daily chart, we see that the Dogecoin price has risen in the past three consecutive days. And looking at the size of the bars, we see that the gains are improving. The coin has also moved above the 25-day and 50-day moving averages, which is a sign that bulls are gaining momentum.
Today, we see that the cryptocurrency moved to $0.4463, which is a notable price since it was the highest level on April 16 and 21. A closer look shows that this price also formed the left shoulder of the head and shoulders pattern. In price action analysis, this pattern is usually a bearish sign.
Therefore, bulls must move above this resistance level to confirm the recovery. If this fails, we can’t rule out another major decline in the near term.
However, if the price moves above this resistance level, it means that bulls have overcome and that the price will likely push to the YTD high of $0.7427, which is about 68% above the current level.