As an analyst with over two decades of experience in the financial markets, I find myself intrigued by the recent surge in Dogecoin (DOGE) prices. Having closely followed the meme coin market since its inception, I’ve witnessed numerous ups and downs driven primarily by social media hype and celebrity endorsements – a unique phenomenon that sets it apart from traditional financial assets.
In the last 24 hours, Dogecoin‘s price has surged approximately 10%, trading at roughly $0.168 on November 5 during early New York trading. This popular meme-based cryptocurrency, boasting a market cap of over $24.6 billion and an average daily traded volume of around $3.7 billion, was the sole top 100 digital asset to experience noticeable growth in the same period.
After bouncing back above a significant support level of about 14 cents, Dogecoin’s price is looking to surge past 20 cents in the short term. Furthermore, the meme-based coin now boasts over 6.7 million distinct addresses that have executed transactions more than 364 million times since its beginning.
If Dogecoin consistently ends its day trades below 10 cents in the upcoming period, the optimistic outlook for it may be postponed or disproven from a technical analysis standpoint. Since setting the bottom of the bear market at approximately $0.057, the price of Dogecoin has been following an extended uptrend pattern.
$DOGE / $USD – Update
Looking good and gaining momentum. Should carry nicely into the #memecoins if this continues
— Crypto Tony (@CryptoTony__) November 5, 2024
Top Reasons Why Dogecoin Price Rallied Today
As an analyst, I would rephrase the statement as follows: Today’s surge in Dogecoin price, contrasting with losses in other cryptocurrencies, can be attributed to tech mogul Elon Musk. Notably, he is a prominent supporter of Donald Trump, the Republican frontrunner for the 2024 US presidential election, who has been consistently leading in polls.
In other words, data from Polymarket indicates that Trump is currently ahead in presidential polls, holding approximately a 61.1% probability of winning the election. Moreover, more than 50 million American cryptocurrency investors are backing Trump’s campaign for the presidency to safeguard the web3 industry from potential government interference.
Nonetheless, some experts have argued that the meme coin space, led by Dogecoin, will thrive in the coming years irrespective of who is announced as the winner of the US 2024 presidential election.
If Kamala wins, there might be a higher likelihood of stricter regulations on utility tokens, causing investors to consider riskier options such as internet memes out of desperation. Alternatively, this could lead to a growth in the influence of memes compared to sectors like DeFi, which may face increased scrutiny. This is according to crypto analyst Miles Deutscher’s observations.
Simultaneously, the X platform, funded by Elon Musk, unveiled the opening of the X Store to offer branded merchandise. Initially, the store will be accessible only within the U.S., however, there are plans to expand this new service globally in the future.
it’s here: 👇
— X (@X) November 4, 2024
The launch of X shop will have a huge impact on the Dogecoin network in the near future.
Furthermore, as a researcher, I find it plausible that given Elon Musk’s previous endorsements of Dogecoin, we might expect to see this cryptocurrency being incorporated into X Payments for a hassle-free transaction of merchandise.
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2024-11-05 14:38