The Dogecoin price is having its best day since June this year as demand for meme coins rise. DOGE has risen by more than 32% and is trading at the highest level since August. It has jumped by more than 70% this month, bringing its total market capitalization to more than $33 billion.
Memecoins soar
We are in a meme coin season. This week, focus among many crypto investors has been on Shiba Inu, whose price has jumped by more than 100%. SHIB’s rally happened as an online petition asking Robinhood to start accepting the currency gained more than 350k petitioners.
As this happened, Shiba Inu was covered by all media publications like Fortune, Wall Street Journal, and Bloomberg. This pushed it to start trending in all social media platforms like Twitter and StockTwits.
The Shiba Inu price rally also led to more demand for dog-themed coins. For example, the Dogecoin price has risen by more than 32% today while more people are looking for it in social media.
Analysts believe that DOGE is a better coin than Shiba Inu. For one, it is backed by Elon Musk, the richest man on earth. He has a net worth of more than $280 billion, making him more valuable than ExxonMobil.
Also, the DOGE community is significantly bigger than that of Shiba Inu. In August, it was estimated that there were more than 4 million Dogecoin investors. With prices rising, there is a likelihood that the number of investors has jumped.
Meanwhile, data compiled by BitInfoCharts shows that the number of Bitcoin transactions has been in a strong bullish trend lately. Still, the number of transactions is substantially below its peak in May this year.
Dogecoin price prediction
The four-hour chart shows that the Dogecoin price went parabolic today. It soared to a high of $0.3350, which was substantially higher than its lowest level this week. As it rallied, the coin moved above the 25-day and 50-day moving averages. It has also moved above the Ichimoku cloud and the important resistance level at $0.2830.
Therefore, while a pullback is likely to happen, I believe that the coin will maintain a bullish momentum today. If this happens, the next key level to watch will be at $0.40, which is about 50% above the current level.
