California (CoinChapter.com) — The Dogecoin stays bullish despite a brutal sell-off Tuesday.
The meme cryptocurrency is now a serious contender in the top-ten digital assets by market cap, with its total circulation hopping around $50 billion. That makes Dogecoin bigger than both Ford Motor Co. and Kraft Heinz Co. and nearly equal to Twitter, even though it practically creates nothing for the masses out there.
The DOGE/USD exchange rate resumed its climb on Wednesday. The hope was that the price could ultimately reach $1, but prices were trading at around $0.32, according to TradingView.com. Even still, the price has rallied around 400% over the past week.
This latest push has also attracted Dogecoin’s celebrity supporters, including Elon Musk. The Tesla owner has contributed to prior price rises for Dogecoin, and many were anticipating his response to this rally. That finally came on Tuesday in the form of a simple emoji.
What’s Next for Dogecoin?
Dogecoin as a whole has been relatively divisive within the crypto industry. Many altcoin supporters love its rise, but others believe it is only adding volatility to the market. Furthermore, there is concern that it is detracting from more useful endeavors in crypto, such as decentralized finance.
Mark Cuban has also spoken out amidst this DOGE run. The Dallas Mavericks owner noted a massive increase in team merchandise sales in Dogecoin over the past month. Earlier in the year, Cuban announced that the team would accept the coin as payment on its online store. In his latest tweet on the coin, he insisted that the Mavericks would not sell any DOGE acquired through merchandise sales.
It is also worth noting that Dogecoin’s price has risen as other cryptos have been in a bit of a slump. The momentum of the Coinbase listing is wearing off and many coins have fallen off, including Bitcoin. The world’s largest crypto is down to around $55,000 after dropping for five consecutive days.
Technically, Dogecoin has entered a period of consolidation. Its overvaluation on higher timeframes continues to pose downside risks. With no concrete fundamentals backing the rally, there will always be a possibility that DOGE/USD crashes hard. Traders could expect to test its 20-day exponential moving average should such a downside move follow. The green wave sits near $0.17.