Dogecoin raced to the top five slots amongst cryptos globally after a 400% rally the week ending April 21 with a market cap of $50 billion. Sparking the rally was Elon Musk’s tweet in a meme “doge barking at the moon.” Dogecoin’s price spiked from 10 cents on April 14 to $0.32 on April 21, with a record 1421% surge in trading volumes. Signalling a cryptocurrency wave that has taken over parts of the world, Dogecoin’s market cap is now greater than Ford Motor and Kraft Heinz. On April 20, Dogecoin price surged nearly 25% in the past 24 hours to beat Tether to the top 5 slots.
Fuelling this spike were endorsements by Tesla CEO Elon Musk and rapper Snoop Dogg. Dogecoin saw a spurt in demand following acceptance by retail traders. With a surge of more than 10,500% since the start of the year, Dogecoin remained the top most performing crypto amongst the top 10 crypto assets. In terms of a valuable digital asset, Dogecoin has beaten other assets like Cardano (ADA), Polkadot (DOT), Litecoin (LTC) and Bitcoin Cash (BCH). Now, the world’s top five cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Ripple (XRP) and Dogecoin (DOGE).
Software engineers Billy Markus and Jackson Palmers created Dogecoin as a fun alternative to Bitcoin in 2013. Dogecoin has surged 600% since the start of April, has delivered a stupendous return of 20,000% over a one year period and 8000% since the beginning of 2021. Meanwhile in the period April 21-22, Bitcoin rose 1.5% to $55233 while Ethereum rose 9% to trade at $2286. Adding to this euphoria was a tweet by the second richest person in the world that “D is for Dogecoin” featuring the digital coins mascot ‘Shiba Inu’ a Japanese dog flying in a rocket and beating the likes of Bitcoin and Litecoin.
Although Dogecoin’s price corrected from the May 8 high by over 40% but solid support in April keeps the sights firm on $1. Trying to stay above the April highs of $0.453, Dogecoin price rests at the pivotal points. The support from $0.443 as on May 12, is supported by a recline from the April lows.
As per the current momentum, the Dogecoin price might face further correction to its major support around $0.25. However, based on the formation of bollinger bands, the coin might reflect a breakout soon.