SUPERNEWS

Crypto

Dogecoin Nears 'Golden Cross' with 70% YTD Surge, Outpaces BTC

Dogecoin nears bullish 'Golden Cross' with a 70% surge, as meme coins' market cap exceeds $50 billion, outperforming major cryptos.

By Bill Bullington

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5/10, 04:42 EDT
Bitcoin / U.S. dollar
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Key Takeaway

  • Dogecoin (DOGE) is on the brink of a "golden cross" technical pattern, potentially signaling a bullish trend ahead.
  • DOGE's year-to-date performance has outpaced Bitcoin with over 70% price surge, indicating strong momentum.
  • The upcoming golden cross would be DOGE's first in three years, recalling the early 2021 rally where prices soared over 8,000%.

Dogecoin's Golden Cross Looms

Dogecoin (DOGE), the meme cryptocurrency that has captured the imagination of the crypto world, is on the brink of a technical milestone that could signal a bullish trend. With a market capitalization of approximately $22 billion, DOGE has outperformed many by surging over 70% this year, eclipsing the near 50% gain of bitcoin (BTC). The anticipated "golden cross," a scenario where the 50-week simple moving average (SMA) crosses above the 200-day SMA, suggests that short-term momentum is surpassing long-term momentum, potentially heralding a sustained upward movement. This technical pattern, which last occurred over three years ago, preceded a monumental rally in early 2021, catapulting DOGE's price by over 8,000%.

Meme Coin Market Expansion

The meme coin sector is not just about Dogecoin anymore. The number of meme coins listed on CoinMarketCap has skyrocketed to 2,229, boasting a combined market capitalization of over $50 billion. This explosive growth reflects a broader trend of increasing interest in meme coins, which, despite criticisms regarding their lack of real-world utility, continue to attract investment. Ethereum founder Vitalik Buterin and former BitMEX CEO Arthur Hayes have both highlighted the unique appeal and potential benefits of meme coins, including democratization, entertainment, and ecosystem growth. Solana, in particular, has emerged as a favorable platform for meme coin development due to its lower costs and faster transaction speeds, further fueling the meme coin frenzy.

Meme Coins Outperform Major Cryptos

The performance of meme coins has been nothing short of remarkable, with the MarketVector’s Meme Coin Index, tracking the top six meme tokens, showing a yearly increase of over 195%. This outpaces the gains of major cryptocurrencies, including bitcoin (BTC), underscoring the growing investor appetite for these speculative assets. The rise of meme coins on platforms like Solana has been facilitated by lower transaction fees, enabling smaller investments with the potential for significant returns. Additionally, the emergence of PoliFi tokens, or politically themed meme coins, has added a new dimension to the meme coin craze, with tokens like BODEN and MAGA experiencing notable price movements following political events.