Summary: As the cryptocurrency market gains momentum, Dogecoin’s price has more to do with it than overall market sentiment.
Dogecoin price rose to a five-month high of $0.168 on Tuesday, riding the broader market trend. At the time of writing, Memecoin is up 3 percent on the daily chart, pushing its weekly gain to 16 percent. Leading the market’s positive momentum is cryptocurrency bellwether Bitcoin, whose rally pushed it past the $70,000 mark on Monday.
What makes Dogecoin tick?
DOGE’s rise has also been supported by bullish sentiment surrounding Elon Musk’s push to create a Department of Government Efficiency (DOGE) in recent weeks. It’s unclear what role Dogecoin would play if such a division were established, but proponents of memecoins typically don’t need much cooperation. These cryptocurrencies have repeatedly shown that a hyped idea is enough fuel to cause price spikes.
Additionally, Musk has become friendly with presidential candidate Donald Trump in recent days, sparking growing excitement in the crypto industry. Both Musk and Trump are known supporters of digital assets, with Trump making NFTs a core part of his campaign. Meanwhile, Musk has long been Dogecoin’s most prominent supporter.
The fact that the current cryptocurrency market rally is driven by Bitcoin is very different from the mid-year uptrend, which was heavily influenced by new-age meme coins such as PEPE, BOME, and DogWifHat. This could potentially favor the OG meme coins, Dogecoin and Shiba Inu, in the event of a meme coin rally, as the new meme coins would not receive a disproportionate share of the spotlight.
Dogecoin price prediction
Dogecoin price momentum will favor upside above the 0.164 pivot mark. With buyers in control, the first barrier is likely to come at 0.167. However, if control by buyers is extended, it could break through that mark and the price could rise to a level that tests 0.169.
Alternatively, below 0.164, bearish control begins. In that case, the first support could be 0.161. However, stronger downside momentum could break below that level and invalidate the upward narrative. Additionally, the price is likely to test the second support at 0.158.
