Dogecoin (DOGE-USD) has flipped XRP to become the seventh-largest cryptocurrency by market cap. On Sunday, DOGE surged 14%, reaching a price above 23 cents, pushing its total market value to over $34 billion—surpassing XRP’s $33.3 billion, according to CoinDesk. This surge is part of a broader rally, with DOGE increasing by 55% over the past week and doubling its value in the last month. If the momentum keeps up, DOGE might soon surpass stablecoin USDC’s $37 billion market cap, which could happen as early as Tuesday.
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Elon Musk Influences Dogecoin’s Surge
Much of DOGE’s recent success can be attributed to its strong association with tech mogul Elon Musk. Recently, Musk proposed the idea of creating a “Department of Government Efficiency” (abbreviated as D.O.G.E) as part of a potential Trump administration. As BBC reports, this has sparked speculation in the trading community, fueling more attention on Dogecoin. Traders are now hopeful that this connection could bring more media attention to the memecoin, pushing its value even higher.
Open Interest in Dogecoin Futures Rises
The rise in DOGE’s price has also been supported by increased open interest in Dogecoin futures, with a 33% spike in open interest since last week, reaching over $1.8 billion. The recent bullish price action was accompanied by a high funding rate, suggesting a growing interest from long traders, according to CoinDesk. In fact, short positions were hit hard, with $37.25 million in short liquidations as DOGE rose past $0.30.
Dogecoin’s Price Action Shows Bullish Technical Momentum
Technical indicators are also looking favorable for DOGE. The cryptocurrency’s price has formed a bullish golden cross pattern, where its 50-day moving average crossed above the 200-day moving average. If DOGE can maintain its momentum and close above $0.30, analysts predict a target of $0.37, representing a further 34% gain from current levels.
At the time of writing, DOGE is sitting at $0.2920. Dogecoin’s market cap has risen by over 20% since Sunday, reaching $42.85 billion.
