Retail and institutional investors are noticing that Dogecoin (DOGE), the fun cryptocurrency born of Internet fame, is experiencing a surprising rise.
Prices jumped nearly 10% in a single day this week, marking an increase of 37% over the past seven days, according to CoinGecko. This unexpected manifestation made the “Doge army” howl with excitement, but experts warn that the future of this meme-inspired currency may not be all sunshine and rainbows.
DOGE up nearly 10% in the last day. Source: Coingecko
From meme to market mover
Dogecoin, launched in 2013 as a light-hearted parody of Bitcoin, has defied expectations. It has evolved into a community-driven digital currency token, attracting a passionate following. However, despite its recent rise, Dogecoin remains far from its peak of $0.73 reached in May 2021.
Technically, Dogecoin appears to be finding support at $0.1599, a level it previously saw a rebound from. On the other hand, resistance is visible near the recent high of $0.2184. As the weekend approaches, speculation increases. Some analysts predict a potential 6-7% drop for DOGE in the coming days.
DOGE putting up impressive numbers in the weekly timeframe. Source: Coingecko.
This prediction reignites the debate about the forces driving the price of Dogecoin. While the coin has an extremely loyal community and undeniable brand recognition, its value remains susceptible to the vagaries of the crypto market. Speculative trading, investor sentiment and broader market trends play a significant role.
Elon’s social media footprints and tweets
Social media and celebrity endorsements, especially that of Tesla CEO Elon Musk, have undeniably shaped Dogecoin’s dramatic price swings. Musk’s tweets, often filled with humor and references to the Doge meme, triggered sudden buying spree, leading to periods of intense volatility.
DOGE market cap currently at $31 billion on the weekend chart. Chart: TradingView.com
Additionally, recent whale activity has accompanied the rise in Dogecoin price. Increased activity, as seen in on-chain market dynamics, has increased investor confidence in Dogecoin. The rise of whale accumulation shows how huge holdings influence cryptocurrency market trends and prices.
Meanwhile, Coinbase Derivatives’ adoption of Dogecoin marks a major shift in thinking, recognizing its rise from a fantasy internet phenomenon to a crypto asset.
Dogecoin’s longevity and expansion beyond meme status indicates growing adoption by institutional and retail investors. As anticipation for Coinbase’s IPO grows, Dogecoin’s recent gain shows its resilience and attractiveness in the ever-changing world of cryptocurrencies.
Featured image from Pixabay, chart from TradingView
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