Despite the 145 per cent hike, Dogecoin is still trading under its all-time high of $0.7376, achieved during its 2021 peak.
The meme coin's recent surge is due to positive sentiment in the market and strong support from popular faces like Elon Musk. According to analysts cited by the news portal, Musk's public endorsements and tweets backing Dogecoin and Trump have played a critical role in driving investor interest and demand.
Edul Patel, CEO of Mudrex, said that Elon Musk's recent tweet propelled Doge to form the Golden Cross, suggesting a stronger rally in the upcoming days. “At this point, Doge faces resistance at 0.463370 while support lies at 0.240350,” he said, according to the news portal.
Crypto industry experts believe that the gains in the market are driven due to speculation that the upcoming Trump administration may collaborate with Elon Musk on the Department of Government Efficiency, commonly referred to as DOGE.
Dogecoin’s gains reflect optimism surrounding Trump’s pro-crypto stance in hopes from investors for a more favourable regulatory environment. Along with Doge, other high scorers for the week include Cronos at 185 per cent gains, Neiro at 118 per cent gains, Cardano at 80 per cent gains and Pepe at 75 per cent gains.
“A rising tide lifts all boats and the boom in Bitcoin rippled on to the alts relatively quickly,” Caroline Bowler, chief executive officer of digital-asset exchange BTC Markets Pty, told the news agency. “The sector in its entirety is expected to be a net beneficiary of Trump’s administration,” said Bowler.
Dogecoin price stayed on the uptrend on Tuesday, gaining 16.3 percent at the time of writing to trade at $0.410. The meme coin king briefly touched the $0.439 mark, the highest price since May 2021. Dogecoin has been on a scintillating run in the last week, with its gains at 154 percent during that period. With that, it has upstaged previous meme coin best favourites like PEPE, DogWifHat, FLOKI and BONK.
With most of the limelight on the meme coin OG, the Dogecoin all-time high price of $0.473 is likely to be broken in the coming days. The upbeat view of Dogecoin price upside is supported by the sentiment surrounding Elon Musk’s central role in Donald Trump’s election win last week.
Musk had been calling for the establishment of a Department of Government Efficiency (DOGE) during the campaign period, and the Dogecoin community are hopeful that Trump’s win could establish something of a similar fashion. However, Musk has avoided tweeting on crypto-related topics since the election win, and that has, in a way, generated optimism that any pronouncement could add fresh impetus to Dogecoin price.
According to IntoTheBlock, Dogecoin has attracted significant whale investments in the last week. The number of DOGE transactions exceeding $100k has risen to 3,230 in the last seven days, hitting $16.2 billion. Meanwhile, CoinMarketCap data shows that Dogecoin’s traded volume in the previous 24 hours to this writing was up by 83, signaling a likely continuation of the upside action.
Dogecoin price momentum favours the upside if the price action stays above the 0.387 pivot. With that, the crypto could move on to encounter the first resistance at 0.408. If the buyers extend their control, it could enable a move above that barrier and test 0.427.
On the other hand, a move below 0.387 will signal control by the sellers. That could put the first support at 0.364, but a stronger downward momentum could break below that level and test 0.338. Meanwhile, that will also invalidate the upside narrative.
The DOGE Rally: Speculation and Hope
The surge in Dogecoin's value, driven by Trump's victory and Musk's influence, has sparked optimism among traders. The hope is that a more favorable regulatory environment under Trump will benefit cryptocurrencies. However, some experts caution that this could be a short-term bubble fueled by speculation.
Trump's Pro-Crypto Stance
Trump's stance on cryptocurrencies during his campaign was seen as generally positive, with pledges to create a favorable regulatory environment for the industry. This has fueled speculation that his administration would be more receptive to cryptocurrencies, potentially leading to greater adoption and investment.
Elon Musk's Influence
Elon Musk's impact on Dogecoin is well-documented. His public endorsements and tweets have historically triggered significant price swings for the meme coin. While Musk has been relatively quiet on crypto-related topics since Trump's election, any pronouncements from him are likely to be closely watched by the DOGE community.
Is the Rally Sustainable?
The question of whether the DOGE rally is sustainable remains unanswered. While the current sentiment is bullish, a number of factors could influence its future trajectory.
Potential for Short-Term Bubble
Some market observers warn that the current surge in DOGE's price may be a short-term bubble fueled by speculation. Without a clear plan from the Trump administration or strong, sustained support from Musk, the enthusiasm behind the meme coin could wane quickly.
Institutional Interest
Despite the recent rally, Dogecoin has yet to attract significant institutional interest. For DOGE to sustain its value and achieve long-term growth, it needs to appeal to larger investors and demonstrate its utility beyond its meme origins.
Moving Forward: What's Next for DOGE?
Dogecoin's future remains uncertain, but the recent surge has injected new energy into the meme coin community. Whether this is a sustainable rally or a temporary bubble remains to be seen. However, the developments of the next few weeks, particularly any pronouncements from Trump or Musk, will be critical in shaping the future of DOGE.
The recent surge in Dogecoin has also sparked discussions about the potential of meme coins in the cryptocurrency market. It’s clear that meme coins can attract significant investor interest and generate significant returns in the short term. However, the long-term sustainability of meme coins remains a question. Ultimately, the future of DOGE, like many other cryptocurrencies, depends on its ability to develop real-world utility and attract broader adoption.
Conclusion: Beyond the Meme
Dogecoin’s current surge underscores the volatile nature of crypto markets and the powerful impact of speculation and sentiment. While the potential for a pro-crypto Trump administration is exciting for some, it is essential to proceed with caution and a long-term perspective. As the cryptocurrency landscape evolves, the fate of Dogecoin – and other meme coins – may depend on their ability to transcend their meme origins and demonstrate real value beyond speculative hype.
