As a seasoned crypto investor with a knack for memecoins and a soft spot for dogs, I must admit that the latest surge of Dogecoin (DOGE) has piqued my interest once again. The combination of Elon Musk’s political ambitions, his apparent affection for DOGE, and the potential government initiative with the same acronym has created a perfect storm of speculation.
Currently, Dogecoin (DOGE), one of the leading meme-inspired cryptocurrencies, is experiencing an impressive upswing as part of the broader crypto market recovery. With gains exceeding 12%, this surge can be linked to Elon Musk’s increasing political influence and speculation surrounding a possible government endeavor with the D.O.G.E abbreviation. These factors have contributed significantly to the recent price spike in Dogecoin.
Elon Musk’s Plan Triggers DOGE Price Rally
Elon Musk is increasingly involved in American politics, as shown by his recent donation of about $75 million to a Political Action Committee (PAC) he founded, which supports Republican presidential candidate Donald Trump. This move has further solidified the connection between the two influential figures. Furthermore, Musk has put forward a proposal for an initiative named “Department of Government Efficiency” (D.O.G.E.).
In a similar vein, Trump proposed that Musk might head a “streamlining committee for the government” if he secures victory in the upcoming election. This endorsement strengthens the credibility of the D.O.G.E. project and stirs discussions about the potential of the government using the D.O.G.E. name.
Dogecoin traded at $0.122, marking a 13.83% weekly gain. This surge positions the meme coin as the top performer among the 40 largest cryptocurrencies by market capitalization. Noteworthy, the DOGE market cap is approximately $17.8 billion. The trading volume of the memecoin is 19.87% higher.
This shows that traders are still confident in the prospect of DOGE. It is worth noting that this altcoin remains more than 83% lower than its all-time high (ATH) of $0.7376 from three years ago.
It’s important to take into account the impact that Elon Musk has on cryptocurrencies. In July 2023, he just tweeted “Doges rule” from his Twitter account, which led to an increase in Dogecoin’s value.
Dogecoin From a Technical Standpoint
Looking at the technical aspects, the meme coin is demonstrating a significant upward surge. To clarify, it has managed to surpass the $0.1200 resistance point and now stands at its current market price. In addition, DOGE is trading significantly above its 100-hour Simple Moving Average (SMA). Furthermore, its Moving Average Convergence Divergence (MACD) indicates a strong bullish movement in the positive zone.
In simpler terms, the Relative Strength Index (RSI) remains above the 50-neutral threshold, indicating strong buying activity at present. The RSI’s oversold zone is at 70, meaning there’s still potential for prices to increase further. Analysts suggest keeping an eye on $0.1280 and $0.1300 as potential resistance points, while $0.1235 and $0.1200 may act as support levels.
Over the past week, it’s been observed that a significant number of Dogecoin (DOGE) investors have chosen to sell off their holdings. According to data from Santiment, a blockchain analysis platform, approximately 106,600 individual wallets have emptied their DOGE holdings during this period. This has resulted in a decrease in the total number of DOGE holders to around 6.62 million, marking the lowest count since April.
In a different perspective, market analysts believe that this could fortify the ongoing surge even more, given the increased resolve shown by those still holding onto their investments.
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2024-10-17 13:53