Dogecoin (DOGE) Bull Run, Bitcoin (BTC) Price Recovery, and More: Bits Recap May 6
TL;DR
- BTC rebounds from recent lows to over $64,000, signaling resilience and potential bullish momentum.
- DOGE sees a notable 12% weekly surge, fueled partly by Tesla’s acceptance, showcasing continued investor interest.
- XRP maintains upward momentum, reaching around $0.53 amidst ongoing legal proceedings with Ripple-SEC lawsuit, with analysts anticipating potential bullish outcomes.
BTC’s Revival
The price of the primary cryptocurrency tumbled significantly at the start of May, nosediving to as low as $56,800 and harming multiple over-leveraged traders. However, the negative trend was short-lived, with Bitcoin (BTC) flashing green over the weekend.
It reclaimed the lost ground, currently trading at over $64,000 (per CoinGecko’s data). Its market capitalization returned above the $1.25 billion mark after briefly plunging to approximately $1.11 billion a few days ago. Its dominance against the alternative coins stands at more than 50%.
Some important indicators suggest that BTC’s rally is set to progress even more. One example is the Market Value by Realised Value (MVRV) score, which has been on a downtrend lately. The metric’s rise signals that BTC is overvalued, while the opposite scenario hints at a buying opportunity. Latest data shows that the MVRV score is below 2.
One person who touched upon the indicator is the cryptocurrency analyst Ali. He presented a chart depicting Bitcoin’s recent price trajectory, arguing that the MVRV 90-Day Ratio suggests that BTC is still in “a primary buy zone.”
DOGE’s Impressive Spike
The largest meme coin by market capitalization has been crypto’s rock star in the past few days, with its price surging by 12% weekly and surpassing the $0.16 mark.
Its rally could be partially attributed to the sector’s overall green environment. Other factors, though, might have had a more significant impact.
Such an example is Tesla’s announcement to officially embrace Dogecoin (DOGE) as a payment method. Nonetheless, the EV giant accepts transactions with the asset only for merchandise in the online Tesla Shop. It is interesting to note that DOGE is the only cryptocurrency supported by the company.
“Tesla only accepts Dogecoin. Tesla cannot receive or detect any other digital assets. Ensure you are making your purchase with Dogecoin. Sending any other digital assets may result in the assets being lost or destroyed. Non-Dogecoin digital assets sent to Tesla will not be returned to the purchaser,” the announcement reads.
Recall that in 2021, the firm briefly embraced Bitcoin (BTC) as a payment method. Shortly after, though, it canceled the offering, citing the asset’s alleged negative impact on the environment.
What About XRP?
Ripple’s native token has also headed north, albeit not as substantially as BTC and DOGE. Its current value stands at around $0.53, a 5% increase on a seven-day scale.
Numerous analysts remain optimistic that a massive bull run is just around the corner. The X users Mikybull Crypto and Dark Defender are among those. The former claimed the “bottom has been confirmed,” adding that the asset is gearing up for an “explosive move.” Dark Defender observed the weekly time frame to forecast that XRP remains poised to reach $1.88 in the near future.
The coin’s price performance could be significantly impacted by a possible resolution of the Ripple v SEC lawsuit. The trial between the entities started at the end of last month, with the company securing three partial court wins last year. XRP’s valuation soared substantially after each victory, meaning the same scenario might repeat in the event of a decisive triumph for Ripple.
If you are curious to learn more about the legal spat between the entities and how it may trigger a bull run for the asset, feel free to check our dedicated video below:
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