Dogecoin, the largest meme coin in terms of market capital, continues to show signs of renewed excitement every now and then. This week, it added more than $1 billion to its value, pushing it into 8th place in the rankings of cryptocurrencies by market cap. This resulted in a surge of more than 10%, raising its market cap to more than $10 billion in just a few hours.
Although its price has since dropped to $0.074 as of the date of this article, Dogecoin’s market capitalization is still $10.35 billion, keeping it at the top of the list and pushing Solana down to the 9th spot. In addition, Solana has seen a 7% drop over the past seven days, losing more than $1.4 billion in market capitalization.
So, what’s driving the price of Dogecoin? It appears that the majority of the population is a major factor – Dogecoin’s past success has been largely driven by social media hype and a few influential people and groups. One of the most notable influences is billionaire Elon Musk, whose tweets praising the cryptocurrency have caused a massive surge in interest and prices.
The latest price spike for Dogecoin is likely due to rumors about Tesla adding it as a payment option in 2021. However, the source code for Tesla’s payment page was recently updated to remove the option.
The current price of Dogecoin (DOGE), which is $0.07378, has been fluctuating between $0.065 and $0.075 in the past seven days. If the $0.075 resistance level is broken, it is possible that DOGE could reach its highest levels since February, when its price was $0.096. Conversely, if it breaks below the $0.060 level of support, it could fall to its lowest level in more than a year.
Despite the fact that Dogecoin lacks the scarcity of Bitcoin and the smart contract capabilities of Ethereum, it has won over a passionate community of supporters and has become relatively stable over the years. However, it is still a highly volatile investment and its value is largely based on the hype generated by social media, rather than its actual utility.
Featured Chart from iStock. Image from Tradingview.com.
