Dogecoin (DOGE) took a beating last week and dropped in market ranking. It is now 25th on market rankings. This was due to the overall decline in the crypto market, and the fact that there was nothing interesting happening around Dogecoin last week. As such, investments moved more into stable coins and a few top 10 coins like XRP (XRP) and Stellar (XLM). However, in the near future, Dogecoin (DOGE) could be headed for a major bounce back.
One factor that could play a role in such a bounce back is Poloniex. Poloniex has added Dogecoin (DOGE) to its USDC market. This could play a role in driving up the value of Dogecoin (DOGE) due to the increased volumes that would come with this market. The excitement of being listed on this market could also see investors start taking positions in Dogecoin (DOGE) in anticipation of an increase in price due to this listing. That’s because Poloniex is a major exchange, and any moves on their part are likely to create speculation around the crypto involved, and in this case, Dogecoin (DOGE) is crypto in the middle of it all.
Even from a technical analysis perspective, Dogecoin (DOGE) is showing signs of a possible bullish breakout. It has been trading in a range for the past 2-days. However, today, it has broken below this range, but the downside break seems to have been rejected by the market. This could be a signal that this was a false breakout and that Dogecoin (DOGE) could turn bullish soon.
With support from the addition to the Poloniex USDC market, there is a high probability that Dogecoin (DOGE) could start the week in positive territory, and move back up market cap rankings.
Besides, after its recent series of losses, Dogecoin (DOGE) has lost a significant portion of its value in the past week. But since its core fundamentals are still intact, it means that Dogecoin (DOGE) is highly undervalued at current prices. This means that in the near-term, traders looking to capitalize on undervalued cryptos could drive up the price of Dogecoin and also push it up market cap rankings, back into the top 20. This would not be the first time that Dogecoin (DOGE) has bounced back after a huge drop. In most cases, it usually bounces back bigger, due to FOMO that comes in, as the price begins to show signs of positive momentum.
Long-term, Dogecoin (DOGE) has the utility to see it gain significantly going into the future. It is the perfect crypto for transferring value over the internet. It is fast, cheap, and very secure. It already has wide acceptance as can be seen by its high transaction volumes. Dogecoin transaction volumes are among the highest in crypto. This indicates adoption, which will be the core drive to crypto adoption going into the future. It is safe to presume that Dogecoin will have a place in the top 10 in the future. it is a hidden gem that most investors are yet to discover.