Dogecoin (DOGE) has seen a significant increase in price over the past 24 hours. This is due to increased purchasing pressure and positive market sentiment.
At the time of writing, the cryptocurrency has risen about 7% to $0.145. The reason for the rise is a combination of social media influence, technical market patterns, and increased investor activity.
Dogecoin’s recent price spike came after billionaire entrepreneur Elon Musk made comments at a political event in New York. Many investors have compared Musk’s mention of the Department of Government Efficiency (DOGE), an effort to reduce government spending, to Dogecoin.
Elon Musk talks about DOGE:
“I think we can reduce the federal budget by at least $2 trillion a year. Tax dollars are being wasted and the Department of Government Efficiency is going to fix that.” pic.twitter.com/isu5ZHOaGz
— Doge Designer (@cb_doge) October 27, 2024
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This idea is increasing buying pressure for the cryptocurrency, similar to previous events where Tesla and SpaceX CEOs mentioned DOGE.
Mr. Musk has always played a key role in Dogecoin’s volatility in the market. Often referred to as the “Dogefather,” his social media posts and comments have caused a lot of backlash in the cryptocurrency market.
His influence was most visible from March 2020 to May 2021, when Dogecoin’s value increased by 64,000% after a few tweets. As with past events, Musk’s latest comments sparked the current bull market and attracted retail investors.
Technical analysis: Golden cross suggests bullish momentum
In addition to Mr. Musk’s influence, Dogecoin’s price is further rising due to positive technical indicators. A golden cross pattern has also appeared on Dogecoin’s daily chart, which is an important technical pattern.
This appears when a shorter-term moving average, such as the 50-day moving average, is trending up and crosses the 200-day moving average.
DOGE/USD 1-day price chart (Source: TradingView)
The golden cross confirmed on October 25th may signal that the market mood has changed from negative to positive. Analysts view this pattern as an indication of a continuation of the uptrend that could contribute to Dogecoin’s price rise.
Currently, Dogecoin is hovering around the 0.382 Fibonacci retracement level at $0.141. This level is considered an important level that can indicate further direction in asset prices.
Analyst forecasts suggest 25% upside potential
Analysts say further upside could be expected if Dogecoin clears the next resistance level. Crypto analyst Ali Martinez predicted that Doge could rise to $0.175 after breaking through the $0.143 resistance level, potentially leading to a 25% rally in the coming weeks. .
As Martinez pointed out, the correction that occurred last week allowed investors to buy DOGE at a lower price, thereby creating a new buy signal.
Source:X
Dogecoin’s price recovery has outpaced the broader crypto market and shows its relative strength compared to major assets such as Bitcoin. The cryptocurrency’s price has risen from its weekly low of $0.128 on October 26th, and this trend could continue if DOGE maintains its current momentum.
Analysts believe that if Dogecoin can sustain above the $0.141 support level, it could reach the $0.156 and $0.171 price levels by early November.
Accumulation and increased market activity
On-chain data suggests that large Dogecoin holders, or “whales”, have been accumulating Dogecoin in recent weeks. Blockchain analytics platform Santiment reported that wallets holding between 10 million and 100 million DOGE added a total of 17.64 million DOGE to their portfolios.
This accumulation trend reflects growing confidence among large investors in Dogecoin’s future price potential. Additionally, Dogecoin trading volume has increased significantly, further confirming the current bullish sentiment.
According to data from CoinMarketCap, DOGE trading volume increased by over 90% in the past 24 hours to reach $1.6 billion. This increase in trading activity often signals increased interest from both retail and institutional investors. This may contribute to stronger price movements in the short term.
