The memecoin wars are heating up and driving quite the rally, especially in leader Bitcoin and its immediate rival, Shiba Inu. Dogecoin is on quite the uptrend, spiking by almost 27% in the past 24 hours, and it looks like the movement to take DOGE to the moon has received a strong boost. At the time of writing, DOGE/USD is trading at around $0.289.

DOGE vs. SHIB: The Meme Token Wars

One of the biggest drivers of the bullish price action is the positive sentiment in the crypto market, supported by crypto king Bitcoin’s surge past the $61,000 mark. This has raised investor confidence in the highly volatile asset class and brought back buyers into the market, driving up trading volume and price across the board, including in the memecoin leader.

Dogecoin has also been on a rally as its community competes with rival Shiba Inu’s community in holding on to its lead. On Wednesday, a strong rally in SHIB had seen the token overtake DOGE in terms of market capitalization, but since then, a buying spree in Dogecoin while profit-taking in the SHIB token have helped the original memecoin reclaim its lead position. Although, it has slipped down from being the seventh largest crypto by market cap to rank nine at present, amid an altcoin rally.

The interest in DOGE lately has been fueled by self-styled Dogefather and Tesla’s CEO, Elon Musk. Earlier this week, Musk took to Twitter once again to praise Dogecoin’s capabilities in taking on Bitcoin in the digital transactions space, suggesting some improvements that can make it even more attractive, especially given its more efficient mining and lower transaction costs.

Why Are Memecoins Rallying Lately?

The rally in memecoins such as Dogecoin and Shiba Inu is powered by an uptick in investor interest in getting into cryptocurrencies. Cryptocurrencies have undoubtedly been the biggest and most exciting asset class to trade so far this year and several experts have predicted an upcoming bull run as we get to the end of 2021.

This has made it even more appealing, even for first-time investors to enter the market; however, with low capital and even lower tolerance for risk, low value memecoins such as DOGE and SHIB seem exciting options for new investors. The proliferation of trading apps such as Robinhood and Public have further boosted the entry of small-time investors into the market, offering them cryptocurrencies to trade.

The success of Dogecoin and Robinhood are closely connected with each other and mutually driven. While Robinhood’s latest earnings report did offer some disappointment, its upcoming wallet feature can drive more interest in trading and holding DOGE, and could drive more buyers into the coin going forward.

Will DOGE head to the mood? Guess we’ll just have to wait and see.

DOGE/USD Technical Analysis

On the 4-hour chart of DOGE/USD, moving averages and the MACD are suggesting a bullish bias. However, the momentum indicator is flashing sell, pointing to some interest among sellers as well.

Although Dogecoin’s price has slipped under the $0.30 level a short while ago, it holds above the pivot point at $0.265. It looks like buyers are gearing up to give the immediate resistance at $0.294 a test soon, following which DOGE could reclaim the $0.30 level.