Key takeaways

• Tron’s TRX recently overtook Dogecoin to become the 8th-largest cryptocurrency by market cap.
• DOGE is currently up 5,5% in the last 24 hours and could rally higher after breaking a key resistance level.

DOGE’s market cap hits $24B, looks to overtake TRX

DOGE, the native coin of the Dogecoin ecosystem, is one of the best performers among the top 10 cryptocurrencies by market cap. The coin added 5.5% to its value in the last 24 hours and now trades at $0.1626.

The memecoin showed resilience despite market-wide volatility triggered by the U.S.-Iran conflict in the past week. However, it lost its 8th position in the market to Tron’s TRX last week.

Despite that, DOGE could soon overtake TRX if the current rally is sustained. DOGE has a market cap of $24.3 billion, while TRX’s market cap stands at $25.6 billion. Dogecoin could rally to new highs after bouncing from a two-month low of $0.1508, with technical indicators suggesting an upward movement from here.

DOGE could retest the $0.17-$0.18 resistance level

The DOGE/USDT 4-hour chart has turned bullish thanks to the ongoing market rally. At press time, the price of Dogecoin stands at $0.16356, and it could rally higher in the near term.

While the price action is inefficient, DOGE could retest the support level at $0.15788 before rallying to the next resistance level at $0.18060. An extended rally would allow DOGE to hit the next resistance level at $0.20 in the coming days.

The RSI of 56 shows that buyers are taking control of the DOGE/USDT pair and could push it higher. The MACD lines are also looking to cross into the negative zone, indicating a strong bullish momentum.

While the bulls are in control, the situation in the Middle East remains precarious and could deteriorate. If the bearish trend resumes, DOGE might retest the $0.145 lows again.

The Ethereum price could face some turbulence, as Justin Sun, the founder of Tron (TRX), has unstaked a whopping $209 million from Lido Finance, a liquid decentralized staking platform for Ethereum. Compared to top cryptocurrencies like Bitcoin (BTC) and Dogecoin (DOGE), the Ethereum price has had a relatively muted performance, skyrocketing to $4,000 before consolidating and struggling to move higher. With the possibility of more sell-offs, Ethereum could see its price crashing down if Sun decides to dump more coins. 

Justin Sun Dumps ETH

New reports from Spot On Chain, an AI-driven crypto platform, revealed that Sun recently applied to withdraw a staggering 52,905 ETH tokens worth about $209 million from Lido Finance. According to the on-chain data, this massive withdrawal was part of the ETH stash Sun allegedly accumulated between February and August 2024.

Spot On Chain has revealed that the total amount of Ethereum Sun bought within this period amounted to 392,474 ETH tokens, valued at $1.19 billion. All of these tokens were purchased via three wallet addresses at an average price of $3,027. Presently, the total profit the Tron founder has acquired since his purchase is up to $349 million, representing a 29% increase from its purchasing price. 

Interestingly, on October 24, Sun had unstaked a massive 80,251 ETH tokens, worth over $131 million, from Lido Finance. Four days later, he transferred the entire amount to Binance, the world’s largest crypto exchange. This notable move took place just before the price of Ethereum had dropped sharply by 5% in mid-October, which could have resulted in a loss for Sun.

Unsurprisingly, this is not the first time Sun has dumped Ethereum. Spot On Chain revealed earlier this month that the Tron Founder had been cashing in his Ethereum holdings during the market rally. 

In November, Sun deposited 19,000 ETH worth $60.83 million to HTX, a crypto exchange. Additionally, he transferred 29,920 ETH valued at $119.7 million to HTX again after its price surpassed $4,000 over the past week. These are just a few transactions the Tron founder has made with ETH over the past month.

Given Sun’s history of large-scale asset movements, further sell-offs could impact the already fragile Ethereum market. Nevertheless, the lingering question remains whether the Tron founder will continue his Ethereum dumping spree.

Ethereum Price Crash Ahead?

While Sun has not publicly commented on his recent large-scale Ethereum withdrawals, the size and timing of these transactions could pose a problem for the altcoin’s future trajectory. Historically, large ETH liquidations have triggered a price crash due to increasing selling pressures.

Related Reading

With the price of Ethereum still unstable and aiming for a stronger upward rally, further large-scale ETH dumps could exacerbate market volatility, especially if other investors or whales follow suit. For now, the price of Ethereum seems to be performing well, recording a more than 7% increase in the last seven days and a 28% surge over the past month, according to CoinMarketCap.

Featured image created with Dall.E, chart from Tradingview.com