• Dogecoin replaced Cardano as the eighth largest cryptocurrency by market capitalization after unleashing a massive rally. 
• Dogecoin yielded 126% gains to holders over the past week, on-chain metrics signal DOGE’s uptrend could soon end. 
• Analysts have identified Dogecoin liquidity zone between $0.13 and $0.14, a pullback is likely in the meme coin. 

Dogecoin price broke past $0.15 for the first time since April 2022 following a massive rally in DOGE. Cardano lost its position as the eighth largest cryptocurrency by market capitalization to Dogecoin. Analysts argue that DOGE price is in the liquidity zone – a key crossroads for price – and the asset could witness a trend reversal soon. 

Also read: Will XRP price rally as Coinbase throws weight behind Ripple in battle against SEC?

Dogecoin price surpasses key level first time in six months

Dogecoin, the largest meme coin by market capitalization recently witnessed a massive rally. Dogecoin yielded 126% gains for holders over the past week. The Shiba-Inu-themed cryptocurrency’s breakout resulted from three key factors: Elon Musk’s (self-proclaimed Dogefather) acquisition of Twitter, whale activity and Dogechain roadmap release. 

Dogechain is the layer-2 scaling solution that bridges Dogecoin to decentralized applications in the ecosystem. Proponents believe “Elon Effect,” the billionaire CEO’s influence on Dogecoin price through his support for the asset has pushed DOGE to the $0.155 level. 

DOGE price hit the $0.15 level in April 2022 but then fell back and struggled to recover from a multi-year downtrend. The meme coin has recently rallied, however, and now finds itself pushing up against the same level again. Whether or not it can break above  on this approach, therefore, will be a key determinant of its next move. 

Cardano bites the dust with Dogecoin’s massive rally

Ethereum-killer Cardano, a leading altcoin and previously the eighth largest cryptocurrency by market capitalization slipped from its position after DOGE’s massive comeback. 

Dogecoin price doubled within two days, from $0.08 on October 30 to $0.15 on November 1, 2022. The historic rally fueled a bullish sentiment among DOGE holders. Cardano price, on the other hand, remained largely unchanged in the same time period. 

On-chain metrics signal the end of Dogecoin’s price rally 

Based on data from crypto intelligence platform Coinglass, $30.8 million worth of meme coins were liquidated over the last 24 hours. This number includes Dogecoin, Shiba Inu and other meme coins. 

The 24-hour trade volume of Dogecoin climbed 45% overnight. This is an indication that there has been a rise in profit-taking by holders as the asset hits the $0.15 mark for the first time in six months. Santiment data reveals that the number of active addresses holding DOGE is much higher now than it was the last time the meme coin hit $0.15. The same is true for trade volume and on-chain activity in Dogecoin. 

Dogecoin Active Addresses over 24 hours

While Dogecoin ranked in the top five social trends for the last four-five days, DOGE finally lost its number one spot and this is considered an indicator of an upcoming price decline. 

Delma Wilson, crypto analyst argues that Dogecoin is currently in the liquidity zone between $0.134 and $0.142. Therefore it is not the ideal opportunity to scoop up the meme coin. If Dogecoin price nosedives below the $0.134 level, the analyst believes it could signal the end of the meme coin’s uptrend. 

DOGE/USDT price chart

Brian, YouTuber and crypto analyst at Business with Brian has set bullish targets of $0.172 and $0.184 for DOGE. If the bearish thesis is invalidated, the analyst believes Dogecoin price has room for growth. The technical expert retains his bullish outlook citing that the recent decline in DOGE price after hitting $0.15, was accompanied by low trade volume, suggesting weakness amongst bears.