Benzinga - Currently positioned in the 10th spot with a valuation of $11.32 billion, Dogecoin (CRYPTO: DOGE) is trailing far behind Avalanche’s (CRYPTO: AVAX) $12.94 billion market cap, with a $1.62 million gap that separates them.
What Happened: Last week brought positive vibes for Dogecoin enthusiasts, with the meme cryptocurrency climbing up to 12% and then slightly pulling back, following a buzz around an @xpayments account on the X, which sparked excitement for potential adoption within the crypto community.
DOGE often experiences spikes in value when payment-focused updates emerge from entities tied to Elon Musk, including X.
Price movements of Dogecoin have been contained within a limited range, oscillating between $0.70 and $0.08.
The question of whether DOGE can leapfrog AVAX in valuation looms in the minds of crypto enthusiasts. A side-by-side assessment of technical indicators for both cryptocurrencies DOGE and AVAX from Jan.1 to Jan. 29 has shown that:
The Simple Moving Average (SMA) indicator suggests a bearish sentiment for Dogecoin in the short term with its price situated below the 50-day SMA. Conversely, the medium to long-term outlook appears more optimistic, as the 50-day SMA has crossed above the 100-day SMA, and the price stands well above the 200-day SMA.
The chart details the following
For DOGE:
- The 50-day SMA is just over the $0.08 level.
- The 100-day SMA trails a bit below the 50-day SMA, placing it in the $0.07 to $0.075 bracket.
- The 200-day SMA sits at approximately $0.074.
Dogecoin’s Simple Moving Average (SMA) technical indicator. (Image Credit: Benzinga)
Avalanche shows a bullish sign across all time frames, with its price riding above the 50-day, 100-day, and 200-day SMAs.
- 50-day SMA: Approximately at $33.26
- 100-day SMA: Roughly at $27.53
- 200-day SMA: Around $19.21
AVAX’s Simple Moving Average (SMA) technical indicator (Image Credit: Benzinga)
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Why It Matters: Moreover, divergence is noted in the volume flow of both tokens. Dogecoin’s On-Balance Volume (OBV) remains relatively unchanged at $2.81 billion, suggesting a pause in the buying pressure. On the other side, Avalanche’s OBV is on an incline at $396 million, indicating intensified buying activity and market confidence.
Looking into the momentum, Dogecoin’s Relative Strength Index (RSI) floats around the neutral 50 level, neither hinting at an overbought or oversold condition. Avalanche’s RSI, below the 70 threshold, still climbs, pointing to sustained buying momentum without the immediate threat of being overbought.
AVAX’s Relative Strength Index (RSI) technical indicator (Image Credit: Benzinga)
In simple terms, Avalanche looks strong and is gaining investor interest, with all signs pointing towards growth. On the other hand, Dogecoin isn’t faring as well in the short term, but it still has potential for growth based on some long-term indicators.
For Dogecoin to flip Avalanche’s market cap, it would need its price to rise above $0.0906, which means it needs to see a gain of 16.15% from the current levels. This would put Dogecoin’s market cap slightly above Avalanche’s current market cap of $12.94 billion.
Price Action: At the time of writing, the trading price for Dogecoin stands at $0.078, whereas Avalanche is currently exchanging hands at $35, according to Benzinga Pro.
Photo via Shutterstock
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