- X Payments secured more licenses, fueling speculation that DOGE’s rally could be near.
- Unlike XRP, DOGE could break out and extend toward $0.20 in the short term.
- Increased profit-taking could send DOGE back to $0.13 while XPR might trade sideways.
Dogecoin (DOGE) could be on the verge of another rally after billionaire Elon Musk secured three more licenses for X Payments. For those unfamiliar, X Payments is the peer-to-peer payment department of X Corporation headed by Musk.
According to a report from Yahoo Finance, the addition meant 22 states in the U.S. have approved. Musk has never hidden his love for Dogecoin. As such, when he launched the X Payments handle a few months ago, many opined that the meme coin would be part of the payment option.
Although Musk had not yet confirmed the integration, he once said he would love to add DOGE to a social media platform.
A Change of Positions May Be Close
If things go as planned, Dogecoin’s market cap might rise higher than its current position. One project the cryptocurrency might flip is Ripple (XRP). At press time, DOGE was number eight on the market cap standings with $23.10 billion.
XRP, on the other hand, was in 6th position with a market cap of $33.62 billion. For DOGE to flip XRP, it needs to add another $10 billion in market cap.
While that seems enormous, it might not be impossible considering their respective performances. At press time, DOGE changed hands at $0.15, representing a 91.51% increase in the last 30 days.
For XRP, its price was $0.61— a 13.13% hike within the same period. Beyond the price action, Ripple’s challenges with the U.S. SEC have been hindering XRP from breaking out. If the lawsuit lingers, then DOGE might climb above XRP this cycle.
XRP to Lag While DOGE Gains?
This month, Dogecoin has displayed a strong correlation with Bitcoin (BTC). But that has not been the situation with XRP which decoupled from BTC several times.
From the 4-hour chart, DOGE displayed strength as the 0.236 Fibonacci acted as its placeholder at $0.15. With the Fib level at the same price as DOGE, an extension might be likely.
The resulting outcome from this trend could be a 27.92% increase. Should this breakout happen, the price of DOGE might hit $0.20. Furthermore, indications from the Moving Average Convergence Divergence (MACD) buttressed the bullish thesis.
As of this writing, the MACD was positive, indicating increasing buyer momentum. Should the momentum continue to climb, DOGE might clear any overhead resistance and could hit a new yearly high in the process.
However, traders might need to watch out for profit-taking. If selling pressure increases, DOGE’s price might circle back to $0.13. In XRP’s case, a sideways movement might be next considering how tight it has been trading.
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