Dogecoin investors see gains as price hits $0.20

Dogecoin (CRYPTO:DOGE) has been among the standout performers in the cryptocurrency market, recently climbing past the $0.20 mark to reach an eight-month high.

According to CoinGecko, the price has since retreated slightly and is now around $0.19.

This rally has pushed DOGE’s market capitalisation to over $30 billion, momentarily surpassing Ripple (XRP) and positioning it as the seventh-largest cryptocurrency before settling back at $28.5 billion and the eighth spot.

The surge in DOGE's value is partly attributed to Donald Trump’s lead in the U.S. presidential election.

Trump’s pro-crypto stance has stirred optimism in the market, with Polymarket data showing a 99.6% probability of his victory.

Trump has already claimed victory, though Kamala Harris has yet to concede.

DOGE holders have seen significant benefits from the recent price surge.

Data from IntoTheBlock indicates that 89% of investors currently hold paper profits, while the remaining 11% are breaking even.

This marks a sharp contrast to September 2023, when DOGE was trading at around $0.06, and only 42% of holders were in profit.

Analysts remain bullish about DOGE's trajectory, with some predicting further gains.

“IT’S HAPPENING! And we won’t stop at $1, mark my words,” stated CROW, who has set an ambitious target of a new all-time high (ATH) at $1.

The X user KALEO expects DOGE could reach $0.40 within a week.

However, on-chain indicators suggest potential caution ahead.

The Relative Strength Index (RSI), a measure of price movement speed and change, has entered bearish territory above 70, signaling that DOGE could be overbought and possibly due for a short-term correction.

Typically, an RSI below 30 is viewed as a buying opportunity, whereas readings above 70 imply overbought conditions and potential for a pullback.

At the time of writing, the Dogecoin price was $0.1997.