- Baby Doge Coin price went vertical in 2023, making it one of the top tokens.
- It surged to the highest level since February 2022.
- The token has gotten severely overbought.
Baby Doge Coin price has done well in the past few weeks. The BABYDOGE token jumped to a high of 4.009e-9 on February 5, the highest point since February 2022. At its peak on Sunday, the meme token was up by over 325% from its lowest level this year.
Why is BABYDOGE soaring?
Baby doge coin is one of the several meme tokens that emerged during the crypto mania of 2021. The dog-themed token is used as part of the network’s DeFi ecosystem. As part of its tokenomics, 45% of all BABYDOGE tokens are held in a dead wallet. As such, out of the 5% reflections, 45% of them will be pushed to the dead wallet.
Another part of the ecosystem is that 5% of all transactions are redistributed to token holders. The goal of this part is to incentivize more users to hold their tokens. Also, as part of the tokenomics, Baby Doge Coin has a charity wallet that receives redistributions.
Read more: How to buy Shiba Inu in 2023.
It is unclear why the Baby Doge price has done well in the past few days. A likely reason is that the swap volume has jumped sharply in the past few weeks. According to its website, the platform has made 1,200 swaps in the past 24 hours while the total value locked (TVL) has jumped to over $55 million. The swap volume jumped to an all-time high of $7.57 million. Therefore, there is a likelihood that BabyDogeSwap is going mainstream.
Another reason is likely that other meme coins have also jumped in the past few weeks. Last week, I noted that Dogelon Mars was in a strong bullish trend but warned that it risked a major dive ahead.
Baby Dogecoin price prediction
On the daily chart, we see that the BABYDOGE price has been in a strong bullish trend in the past two months. As the token jumped, it moved above the important resistance point at 1.825e-9, the highest point on November 6. This price was also along the upper side of the cup and handle pattern. It also cruised above the crucial resistance point at 3.768e-9 (March 9 2022 high).
The coin has moved above all moving averages. At the same time, oscillators show that the coin has been severely overbought. Therefore, the coin will likely have a pullback in the past few days. If this happens, the next reference level to watch will be at 2.0 E-9.
