Dogecoin Price to overtake PEPE and BONK as $4 Billion Signal Emerges

FXEmpire.com -

Dogecoin price surged to a 2-year peak above $0.15 on March 2, capping its DOGE‘s gains for last week at 80%.  However as prices pulled back toward $0.13, vital market data signals that majority of memecoin investors may chose DOGE over PEPE, BONK and Dogwifhat (WIF) as the pine for another leg-up. 

Can the bulls orchestrate a move above the crucial $0.20 target in the week ahead? 

Dogecoin Set to Dominate Memecoin Market Rally

Memes Coins were by far the best performing sector in the crypto markets in the last week of February 2024. The likes of PEPE, and Solana-hosted BONK and Dogwifhat (WIF) led the wave with triple-digit gains respectively.

Albeit a comparatively lower 80% growth performance for the week, Dogecoin, the largest meme coin by market capitalization also joined the rally, soaring to 2-year peak of $0.15 on March 2.  

However, in terms of nominal capital inflows, DOGE appears to be generating superior interest in the market. On Feb 29, Dogecoin trading volume surged past $4 billion, the highest since March 2022

For context, DOGE’s lowest trading volume in the last 3 days is $2.7 billion recorded on March 3. This is greater than the market capitalization of BONK ($1.7 billion), WIF ($1.6 billion) and PEPE ($2.2 billion) respectively. 

Dogecoin (DOGE) Trading Volume vs. Price | Source: Santiment

Trading volume refers to the total value of units of an asset that are bought and sold within a specific time frame. When trading volume experiences a substantial increase, during a bull market, strategic investors interpret it as a positive signian for a number  of reasons. 

Firstly, it indicates heightened participation from traders and investors. Furthermore, higher trading volume typically translates to increased liquidity in the market. With more buyers and sellers actively participating, it becomes easier to execute trades without significantly impacting the asset’s price.

Hence the asset is able to maintain significantly higher support levels, and avoid dramatic slumps during a market pullback. This critical factor could  encourage investors with a lower risk appetite to choose Dogecoin over competitors.

If this scenario plays out then DOGE is likely to outperform the likes of PEPE and BONK in the week ahead. 

Price Forecast: DOGE to overtake BONK and PEPE on the road to $0.20

Drawing inferences from the trading trends analyzed above, the Dogecoin market rally appears to be more sophisticated than the likes of BONK and PEPE. In effect, strategic investors may increasingly lean into Dogecoin. 

These key signals could put Dogecoin price on the front foot, possibly retesting the $0.20 area if the memecoin market rally continues in the days ahead. However, as observed last week bulls face major resistance around $0.16. The upper-Bollinger band technical indicator trending just below that further affirms this stance.   

However, a decisive breakout above that zone, could open the doors to a bullish rally toward $0.20 as predicted. 

Dogecoin (DOGE) Price Forecast, March 2024 | Source: TradingView

On the flip side, there’s a chance the bears could negate this narrative if the DOGE price tumbles below $0.95. However, as emphasized by the fluid Dogecoin market liquidity, the bulls will likely mount a major dominance support buy-wall at the $0.097 20-day

This article was originally posted on FX Empire

More From FXEMPIRE:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.