Meme cryptocurrency Dogecoin (DOGE) has seized upon the ongoing market rally, breaching key resistance levels as it sets its sights on the coveted $1 mark.
In the wake of Dogecoin’s recent price surge, the meme coin is rapidly closing in on XRP in terms of market capitalization. As of press time, the market cap of the two cryptocurrencies shows a difference of nearly $4 billion, with XRP standing at $32.98 billion and DOGE at $29.98 billion.
XRP and DOGE market cap. Source: CoinMarketCap
The question arises: does Dogecoin have the potential to surpass XRP’s market capitalization? This achievement will primarily hinge on Dogecoin’s price movements.
DOGE price analysis chart. Source: TradingView
Dogecoin vs XRP fundamentals
Furthermore, other factors are poised to contribute to Dogecoin’s price movement, including its expanding acceptance as a payment method and robust community-driven initiatives. Moreover, ongoing support from influential figures such as Tesla (NASDAQ: TSLA) CEO Elon Musk is expected to play a pivotal role in the token’s trajectory.
Comparatively, Dogecoin’s history suggests its potential to rally alongside market momentum, particularly as XRP has largely consolidated below the $0.70 mark despite the ongoing rally. The market’s reaction to the upcoming Bitcoin (BTC) halving will be crucial, considering its historically bullish impact.
However, skeptics argue that Dogecoin’s valuation is predominantly speculative and driven by hype, lacking the fundamental utility and technological innovation inherent in other cryptocurrencies like XRP. Additionally, concerns persist regarding the long-term sustainability of Dogecoin’s price surge, with critics warning of heightened volatility.
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