As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed the rise and fall of countless assets, trends, and fads. The recent surge of Dogecoin (DOGE) has caught my attention, not just because it’s a meme coin, but due to its impressive performance and the underlying factors driving this movement.
In recent days, Dogecoin (DOGE), the leading meme cryptocurrency that operates using the proof-of-work consensus mechanism, has experienced a significant surge of more than 86% over the past week. This surge brought its value close to the November 2021 peak, approximately 30 cents. The daily average traded volume saw a dramatic increase of about 200%, reaching around $20 billion on Monday, November 11, during the early European trading session.
After a significant surge over the last few days, Dogecoin has taken the sixth position among cryptocurrencies, pushing Ripple Labs-supported XRP off its pedestal. As for XRP, it currently trades at $0.58 with a 24-hour volatility of 0.1%, and boasts a market capitalization of $33.12 billion and a 24-hour trading volume of $4.72 billion.
Major Factors that Led to the Dogecoin Price Pump
As a researcher examining the digital currency market, I’ve observed an impressive surge in Dogecoin’s value recently. This rise can be attributed to several optimistic factors that have come together in the past few weeks. Among these, the election of Donald Trump as the next POTUS and the strong backing he received from tech mogul Elon Musk, have significantly boosted Dogecoin’s positive trajectory.
Boasting over 5.3 million users on its network, Dogecoin has become a popular choice among investors looking to expand their cryptocurrency holdings. Additionally, the DOGE/BTC exchange rate has bounced back from the depths of the 2022 bear market and broke free from the long-standing downward trend it had been following for years.
Based on recent blockchain analysis, over 799,000 Dogecoin transactions were processed within the last day.
With a surge in Dogecoin’s blockchain transactions, an increasing number of institutional investors are jumping aboard the Dogecoin bandwagon, anticipating the predicted “altseason.
Previously, Spirit Blockchain Capital Inc (CSE: SPIR), a company specializing in blockchain technology and digital asset management, revealed plans for a strategic purchase of Dogecoin Portfolio Holdings Corp. This web3-centric organization is known for fostering the widespread acceptance of DOGE.
In the future, it’s anticipated that Dogecoin will be incorporated into the group of unicorn businesses controlled by Elon Musk, primarily under the X platform umbrella. This integration could potentially enhance Dogecoin’s overall usefulness.
What Next
Based on comments from well-known trader Peter Brandt, Dogecoin’s price has surpassed an upside breakout from an inverted head and shoulder pattern after a recent surge to around 30 cents. This development suggests that Dogecoin could be poised for a significant rally towards its record high, following a trend similar to Bitcoin in the short term.
As an analyst, I am observing a significant upward trend in Dogecoin ($DOGE). Given historical patterns, it appears that we might be nearing a peak. The Fibonacci retracement levels suggest a potential maximum could fall between approximately $3.95 and $23.26. In other words, if this trend continues, we may see Dogecoin price soaring to these levels before potentially correcting.
— Ali (@ali_charts) November 10, 2024
According to crypto expert Ali Martinez, who looks at past trends, he anticipates that the price of Dogecoin might reach a high within the range of its Fibonacci extension, which could be anywhere between approximately 1.618 and 2.272 times the current monthly value. Furthermore, it’s worth noting that Dogecoin has regularly closed above its 50-week Moving Average (MA). Also, the Relative Strength Index (RSI) of Dogecoin on a weekly basis has climbed over 70% for the first time since April this year, signifying strong momentum.
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2024-11-11 12:01