Baby Doge passes $1B market cap: 2 key factors helped

Baby Doge eyed a new all-time high as the recent price surge pushed close to its previous historic high.
Recent performance underpinned growing interest in the memecoin in both the spot and derivatives segments.

As a seasoned analyst with years of experience in the cryptocurrency market, I have witnessed countless surges and crashes, memecoins, and the rise and fall of various projects. And yet, Baby Doge [BABYDOGE] continues to surprise me.

In the past day, Baby Doge [BABYDOGE] was a hot topic on X (previously known as Twitter), and it’s no wonder why. This meme-based cryptocurrency has continued the bullish surge initiated by Elon Musk over two days ago.

Significantly, the recent surge in demand propelled its market value surpassing $1 billion for the very first time, placing BABYDOGE amongst a select group of notable meme-coins having reached this significant benchmark.

At this moment, the value of Baby Doge is nearly reaching a fresh peak record. In just the past day, the meme-based cryptocurrency has surged to as high as 0.0000000067 USD.

This means it came close to retesting its previous ATH achieved in January 2022.

At its highest point recently, Baby Doge was just 7% shy of setting a brand new record high. Yet, it showed signs of investors cashing out their profits. This could potentially hinder its progress towards reaching those new heights.

According to IntoTheBlock’s findings, there are currently fewer addresses at a record high than during the 2022 peak.

Nevertheless, a significant increase in the number of addresses has been observed recently, even during the market rally, which seems to be reaching new lows.

Based on my years of experience in the financial markets, it appears that the influx of new addresses might be fueling the recent market surge. However, it is essential to note that while this growth could continue, it does not necessarily indicate a significant enough profit margin to trigger a mass sell-off. I have witnessed situations where new investors’ enthusiasm can sustain prices for extended periods, but eventually, reality sets in and we see a correction. So, while the current trend seems promising, I recommend maintaining caution and keeping a close watch on market developments.

Evaluating Baby Doge’s demand

Regarding the demand for Baby Doge, it was supported by an increase in Open Interest. This figure peaked at over $4.63 million within the past 24 hours.

Nevertheless, the current Open Interest fell short of the record set by the cryptocurrency in 2021, which peaked at approximately $8.28 million.

As an analyst, I’m observing a promising trend: It seems there could be further expansion potential, given the recent resurgence of interest in Baby Doge.

The recent surge in Baby Doge coin’s price was fueled not only by its own momentum, but also by a significant increase in demand from the active trading market. On December 9th alone, there was an influx of approximately $3.28 million into this market, which represents the highest daily inflow recorded in the year 2024.

It’s worth mentioning that the surge happened following the previous peak in outflows on December 7th. Remarkably, this event had minimal effect on selling pressure due to the robust wave of demand.

However, it underscored the presence of sell pressure.

On December 9th, it was evident that there was a strong selling force at play during the spike in forced closures of short positions. Approximately $167,000 worth of such closures were noted on that day.

Over the past three months, the most significant sell-offs have been seen. This suggests an increasing appetite for derivatives, yet it also hints at possible increased market turbulence in the future.

2024-12-10 20:39

Evaluating Baby Doge’s demand

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