The Dogecoin price rallied to an all-time high as demand for cryptocurrencies rose ahead of the Coinbase listing. DOGE soared to a high of $0.1200, which was more than 65% above the lowest level yesterday.
What happened: In an article yesterday, I predicted that the Dogecoin price was on track to rise by 20% to hit its previous all-time high of $0.088. While my thesis was right, the performance was better than what I expected. Instead of rising by just 20%, the Dogecoin price rose by more than 60%. This pushed its total market cap to more than $14.4 billion making it the 13th biggest cryptocurrency in the world.
This performance was due to three main factors. First, Bitcoin price managed to move above its previous all-time high of $62,000. Its price then accelerated and is now closing in on $65,000. In most periods, the prices of cryptocurrencies tends to soar when Bitcoin rises. Further, since Dogecoin and Ripple are cheap nominally, many investors tend to buy them as proxies to BTC.
Second, Dogecoin price rallied because of the US inflation numbers that pointed to lower interest rates for longer. Finally, investors are generally bullish on Dogecoin and other currencies ahead of the Coinbase listing.
In my article on Dogecoin price yesterday, I pointed to the fact that the currency was forming a cup and handle pattern. Today, the coin has moved above all the short and longer-term moving averages and while its bullish momentum has risen. Therefore, in my view, while a pullback is possible, the fear of missing out will keep pushing DOGE higher. If this happens, the next key level to watch is $0.13, which is about 10% above the current level.
