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Dogecoin (DOGE) has seen an 8% price increase over the past three days, reaching its highest level since January 21.
The OG meme cryptocurrency continues to see support from the retail community as traders look to capitalize on the market’s bullish momentum.
However, another new meme coin, Sponge V2 (SPONGEV2), is also gaining traction and could be poised for a major breakout if its current trajectory can be sustained.
Dogecoin Charges Towards $1 Milestone as Demand Keeps Climbing
Dogecoin’s rise since Tuesday has propelled the coin’s value to $0.085, inching it ever closer to the elusive $1 mark that has long been a goal for meme coin investors.
Spot trading volumes hit $500 million over the last 24 hours, according to CoinMarketCap, indicating strong interest in DOGE at current levels.
Data from on-chain analytics firm IntoTheBlock reveals that 64% of DOGE holders are currently in profit, given the recent uptick.
This suggests the rally may have some legs if earlier buyers continue holding out for more gains.
Additionally, there has been a spike in transactions worth over $100,000 in the past four days – with activity like this usually preceding major price movements.
With strong technical and on-chain signals backing its advance, Dogecoin seems poised to continue its current run.
However, some analysts caution that the meme coin could face resistance around the $0.090 level, where price struggled in January.
Meme Coin Market Surges Past $22bn But Shows Signs of Cooling Off
While Dogecoin has been capturing most of the recent headlines, the meme coin sector as a whole has been on a tear in the past week.
According to CoinMarketCap, the total market cap for meme tokens has grown to $22.6 billion.
Nearly all major meme coins, including Shiba Inu (SHIB) and Bonk (BONK), have posted gains over the previous seven days, benefiting from the reinvigorated hype in the broader crypto market.
However, trading volume across meme coins has dropped 23% over the last 24 hours to $1.5 billion, hinting that the sector may be cooling off slightly.
This pullback in liquidity could indicate potential exhaustion as some traders opt to take profits rather than hold long-term.
As such, a period of consolidation could be ahead after such sharp rallies, with DOGE holders likely to keep an eye on key price levels to determine the direction of the meme coin market.
Fast-Rising Sponge V2 Checks All The Boxes for the Next Meme Coin Explosion
As the hype around Dogecoin and the broader meme sector demonstrates, there is still substantial demand among crypto traders for the next viral sensation that could deliver enormous returns.
One contender rapidly gaining traction is Sponge V2, which migrated to the Polygon network last week.
Since then, the SPONGEV2 price has rocketed 127% to $0.00126 at the time of writing.
There are now over 50,000 holders of SPONGEV2 and a staking reward rate of 1,163% APY – far higher than the average yield in the crypto market.
The project’s roadmap reveals plans to launch a play-to-earn (P2E) game in the future, capitalizing on the popularity of crypto gaming to drive further adoption and price increases.
These plans have resonated with Sponge community members, and the project’s official Twitter account has now grown to 31,000 followers.
While much of the speculation in the meme coin space is centered on established names like Dogecoin, Sponge V2 represents a new project that’s still early enough in its life cycle to deliver outsized returns.
As a recently bridged token with upgraded tokenomics and ambitious plans for the future, Sponge V2 checks many of the boxes traders look for when seeking the next meme coin that could explode.
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