Dogecoin (DOGE), the top dog meme coin and the second largest Proof of Work (PoW) network, sparked up an 8% rally on Tuesday, adding another $1.33B to its market cap. The positive price movement has pushed Dogecoin (DOGE) to #8 spot, forcing Cardano (ADA) to step aside to the 9th position by global market capitalization.
House Of DOGE Drops A Bombshell
Notably, Dogecoin (DOGE) decoupled from the rest of major-cap altcoins following the news of Dogecoin Foundation launching the official Dogecoin (DOGE) Reserve. Coming with an initial purchase of 10 million Dogecoins, the Dogecoin Reserve project aims to show and prove how the flagship memecoin can be adopted as a seamless and efficient way to transact money.
Announced by the House Of Doge, a newly-formed corporate subsidiary of the Dogecoin Foundation, this marks a shift from a joke meme coin approach to an altcoin with a userbase and consistent trading volumes. According to the press release, Dogecoin’s (DOGE) adoption will remain as a key focus, offering cashbacks and special discounts in merchant campaigns.
Is Dogecoin Dreaming Of $1 Again?
From a technical perspective, multiple Dogecoin’s (DOGE) on-chain metrics turned bullish over the past 48 hours. For one, the Moving Average Convergence Divergence (MACD) delivered a bullish signal cross, which occurs when the MACD line depicted in blue crosses the orange signal word in an upward trajectory.
After overtaking Cardano (ADA) in crypto’s global charts, Dogecoin (DOGE) is now 16.6% up in 7 days, continuing to sport massive trading volumes on Spot markets. To illustrate, the $1.707B trading volume for DOGE on Tuesday outpaced the likes of Cardano (ADA) and BNB Coin (BNB), only trailing Ripple (XRP) by $500 million.
Currently attempting to break through $0.20, Dogecoin’s path to the $1 price target will highly depend on the canine coin’s adoption rate, as it’s currently accepted as a payment method only by a few big names such as Tesla, SpaceX or the Dallas Mavericks franchise. Nevertheless, some crypto cards released by exchanges, such as KuCoin’s debit card, support DOGE for in-shop payments.
On The Flipside
- Despite the initial joke status, Dogecoin has garnered a considerable amount of mentions in recent SEC fillings, where the largest meme coin is referred to in a positive light as one of the most recognised crypto currencies globally.
Why This Matters
Dogecoin Foundation’s new strategic reserve ensures the meme coin has liquidity and stability as a means of payment while Dogecoin already generates billions in trading volume per day.
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