Dogecoin, the king of memecoins, has regained the memecoin throne and is once again in the spotlight. According to Coinmarketcap price data, Dogecoin is currently outperforming other meme coins in both 24-hour and 7-day time frames.
More surprisingly, Dogecoin isn’t just outperforming its memecoin competitors. It also exceeds other major cryptocurrencies in the top 20 market capitalization rankings.
As it stands, Dogecoin looks most likely to rise to $0.2, but what is causing this rally?
What’s behind DOGE’s double-digit price increase?
At the time of writing, Dogecoin price is up double digits in all major time frames, with a notable 30% increase over the past seven days. If we look at the broader landscape of cryptocurrencies, we can see that this price hike is not limited to Dogecoin. Many other digital assets have also been riding a wave of notable gains, fueled by Bitcoin’s continued rise and subsequent rise above $68,000 for the first time since June.
However, Dogecoin, which has largely followed Bitcoin’s rise since the beginning of the year, has now broken away and is currently outperforming Bitcoin. To put this into context, Dogecoin is up almost 10% in the past 24 hours, while Bitcoin’s current value is up 0.52% in the same 24 hours.
This week’s Dogecoin rally started on Tuesday, October 15th, along with other cryptocurrencies. However, Dogecoin’s rally really took off on Thursday, October 17th. This was caused by an unexpected move by Elon Musk’s Tesla, which transferred $750 million worth of Bitcoin to a new, undisclosed wallet.
Although the transaction was not directly related to Dogecoin, it sparked speculation among investors that Tesla would move assets to the memecoin, and demand for Dogecoin soared.
DOGE’s market capitalization is currently $21.2 billion. Chart: TradingView
Adding to the excitement, Musk briefly mentioned Dogecoin the same day at a town hall meeting in Folsom, Pennsylvania. Asked in connection with his post on social media platform
This was enough of a long-awaited signal for Dogecoin enthusiasts, many of whom started flooding into the memecoin once again. This combination of speculation has led to a flurry of new investments in Dogecoin, creating fear of loss (FOMO) among investors.
What will happen to the price of Dogecoin in the future?
As of this writing, Dogecoin is trading at $0.145, its highest price since June 13th. As it stands, Memecoin has broken through the $0.14 resistance level and is heading towards strong momentum for further upside. In case of continued appreciation and FOMO, Dogecoin price will steadily approach the $0.2 price point for the remainder of October.
However, there is still a chance that DOGE will retrace to retest the $0.14 resistance before resuming the leg up.
Featured image from Getty Images, chart from TradingView
