The DOGE Frenzy: Analysing Dogecoin’s (DOGE) Recent Surge in Value
In Brief
The cryptocurrency industry is rapidly expanding, and meme coins are preparing for a significant upswing. Dogecoin (DOGE), which has the biggest market capitalisation, is starting to rise.
The crypto market is picking up speed, and meme coins are getting ready for a huge jump. Among meme coins, Dogecoin (DOGE) has the largest market cap and is beginning to show signs of growth.
In the past 30 days, the leader of all meme coins has risen over +9.75% in value, separating itself from the rest of the pack. On April 7, the meme coin surpassed the $0.20 mark and went as high as $0.27 on April 8 before taking a slight dip to changing hands at $0.19 on major spot markets.
So, you have to ask, what’s going on with DOGE that justifies this price change?
The Elon Musk Factor
A big part of DOGE’s success is the market hype. There is a lot of power in social media over how buyers feel. When famous people like Elon Musk post praise for it, prices go up a lot.
There are reports that Elon Musk wants to add Dogecoin as the payment method for X. This has made the price of Dogecoin go up. It’s a similar scenario to when Tesla announced that it’d accept payments in DOGE. The Dallas Mavericks are also one of the famous teams that accept Dogecoin as payment for tickets and products.
Besides them, DOGE has been making its way into many industries and businesses, including:
- Twitch
- GameStop
- Sheetz
- AirBaltic
- AMC Theatres
The Upcoming Bitcoin Halving
The recent price spike in Dogecoin is in line with patterns seen in the market ahead of Bitcoin halvings. Some traders may be interested in DOGE because of the future half on April 19, 2024. This is because they are looking for other investments that could give them better short-term gains while they wait for the event and see how it affects the market as a whole.
This is identical to what happened before the last two Bitcoin halvings, when the value of Dogecoin went up 200% and 50%, respectively.
And it’s not just Dogecoin. Shiba Inu and Bonk are just two of the many meme coins that have shown similar trends, all of which saw big gains before the halving. Because of this, meme coins seem to be headed for a bigger rally, which might be due to people buying more meme coins in preparation for the Bitcoin halving.
The Growing Meme Coin Market
Many brand-new meme coin projects are coming out in 2024, and traders are interested in them. As meme coins go viral, it’s only natural that some buyers turn their attention back to DOGE, the leader of the pack.
When it comes to widespread recognition, DOGE still stands out from other meme coins. With its strong backing and a loyal customer base, DOGE will surely be on another level compared to other projects in the market.
Some new changes and updates to the protocol are meant to make the coin more efficient and scalable over time. If these changes work as planned, it may draw more long-term users. But the current hype will probably still overshadow these changes, affecting short-term movements.
DOGE Whales Alert
Just in the timeframe between April 5 and April 10, Whale Alert shows that several unidentified wallet addresses have acquired over 350 million DOGE. One wallet, in particular, bought 100 million DOGE and another 99.27 million within just 24 hours.
The same platform, #Robinhood has handled two other massive transfers, selling 104 million DOGE and 67.6 million DOGE on April 8.
While it’s true that only 0.51% of all DOGE addresses currently have over 100,000 Dogecoins, the numbers are still big enough to capture the public’s attention and set the stage for a rapid bump in the coin’s value.
On the technical side, recent protocol upgrades aim to improve DOGE’s efficiency and scalability over time. If future planned developments are successfully delivered, it may attract more long-term holders. However, the hype will likely overshadow such upgrades, affecting short-term prices.
The $1 Barrier
Given that DOGE’s rise so far has been driven chiefly by hype with some improvements on the technical side, passing $1 is an aggressive goal. However, with the right conditions, it is still within reach. Naturally, it’s tough to tell what the price of a coin will be in the future because they are so volatile.
But, some crypto experts paint a bright picture of Dogecoin’s future. One of their stronger arguments is the Cycle of 7 Years theory.
The Cycle of 7 Years
Based on past data, this theory indicates that the value of DOGE will move in a regular pattern, signalling a significant rise. One expert, @TATrader_Alan, had this to say:
This theory explores connections between the past and present prices of DOGE, showing a possible way for the DOGE value to rise above the $1 mark. Even though things are looking up, Dogecoin has to deal with rising pressures and severe rivalry from new coins, which could affect how well it does in the market.
DOGE could keep increasing its value as long as there is plenty of coverage on social media sites and more endorsements. In the same way, big platforms that aggressively promote and offer the coin could bring in enough capital to go over $1.
The Near Future for DOGE
Dogecoin’s future will depend on how useful it might be. It might only last for a while if meme coins remain purely whimsical. However, if transaction fees go down and businesses embrace it more, it could become a real currency that everyone uses. It has a big, passionate fanbase that will indeed support the coin’s progress.
Long-term predictions are hard to make, but Dogecoin will apparently be around for a while. Because of technical advancements and a growing base, there is a good chance that it will continue its major upward trajectory in the coming years.
The crypto market is volatile, so you must stay on top of the latest DOGE news before deciding to invest.
Disclaimer
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About The Author
Viktoriia is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Viktoriia is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
