Dogecoin price went parabolic on Tuesday as optimism spread in the cryptocurrency industry. It jumped to a high of $0.090, which was the highest level since June 1st of this year. This price is about 78% above the lowest level this year. Its market cap has jumped to over $11.4 billion.
Why is DOGE rising?
Dogecoin is the biggest meme coin in the world. It is a cryptocurrency that aims to be a good alternative to Bitcoin, the biggest digital coin in the world.
Dogecoin price has staged a strong recovery in the past few weeks as investors cheer the improving sentiment in the market. This recovery is in line with the performance of other cryptocurrencies like BTC, ETH, and XRP.
First, it has risen because investors believe the worst has already happened in the cryptocurrency industry following the recent crash of Terra, Three Arrows, and Celsius. At the time, most analysts were expecting a major contagion to happen.
Second, Dogecoin price has also rallied because of the correlation between stocks and cryptocurrencies. Most American stocks have jumped sharply in the past few weeks. The Dow Jones, Nasdaq 100, and S&P 500 indices have jumped by more than 20% from their lowest levels this year. Historically, there is a correlation between stocks and digital coins.
Third, DOGE has also risen because of the ongoing enthusiasm about the upcoming Ethereum merge. This merge, which will combine the PoW version with the Beacon Chain, will make it significantly faster and more efficient. While the merge will not impact Dogecoin, the strong performance of ETH has had a contagion effect in the crypto industry.
Dogecoin price prediction
The four-hour chart shows that the DOGE price has been in a strong bullish trend in the past few days. It has even rallied in the past three straight days. And today, it managed to move above the important resistance point at $0.084, which was the highest point last week.
Dogecoin price is above the 25-day and 50-day moving averages while the MACD has continued rising. Therefore, the coin will likely continue rising as bulls target the next psychological level of $0.10. A drop below the support level at $0.081 will invalidate the bullish view.