Dogecoin (DOGE) , the first meme cryptocurrency, has attracted fresh attention from both investors and enthusiasts. After a rocky period where its price dropped below $0.13 and saw a 20% decrease in value in the last month, Dogecoin price now appears to be on an upward trend, with a 9% increase in value over the past week, despite the current pessimistic outlook. What is driving this new positivity, and is DOGE getting ready for a major surge? Let’s explore the main reasons why Dogecoin could be on the verge of a significant increase.

Dogecoin Price Market Performance

The current price of DOGE is $0.1564, having decreased by 4.74% over the past day. Although this trend is seen in a broader period, demonstrating a decline of 19.68% over the past month, the meme coin has seen a 9.7% growth over the past week.
Boasting of a market cap of $22.55 billion. Dogecoin ranks as the 8th largest cryptocurrency, according to CoinMarketCap. The token recorded an increase of 38.45% in its trading volume to record $1.68 billion over the past 24 hours. Although it reached its all-time high of $0.7376 in May 2021, it has since declined by 78.94% in value.

Top Reasons Dogecoin Price May Rally Soon

Various reasons are behind the possibility of DOGE price rallying soon.

1. Strong Support and Resilience

Crypto analyst Behdark shared insights indicating that Dogecoin has formed strong support slightly above the $0.1 level. This assistance has served as a protective barrier, averting a decrease in price during market downturns. The resilience seen in Dogecoin at this level shows the continuing demand for the cryptocurrency, boosting investor confidence despite market fluctuations.

DOGE has been experiencing a long correction period, lasting more than 500 days, similar to a previous correction that lasted for 900 days. In the past, these corrections have frequently come before bullish rallies, suggesting that Dogecoin could be ready for a notable upward trend.

The current surge in Dogecoin did not occur suddenly; it actually started in October 2023 with the price breaking the $0.06 mark. Since that time, the digital currency has gone through periods of increasing and decreasing trends, with each cycle adding to its overall upward movement.

Each evaluation has its own parameters, and Behdark’s analysis is no different. He specifies that Dogecoin must maintain a price above $0.08 for the bullish rally to continue. This transparent standard gives traders a concrete measure to track the strength of Dogecoin’s surge, making sure that any veering off from the expected path is quickly noticed.

2. Tesla’s Adoption and Speculations on X Payments Integration

Recently, Tesla added on its website that it will start accepting Dogecoin as a form of payment for certain products in its merchandise store, further fueling the memecoin’s popularity. This move highlights the growing adoption of DOGE as a cryptocurrency for everyday use in business, demonstrating the growing importance of Dogecoin in online payments.

Because of this move by Elon Musk Tesla, there are speculations that there is potential for integration of DOGE into Musk’s other ventures, specifically X (former Twitter) payments. Although there is no official announcement towards this development, the possibility of Musk adding Dogecoin to another platform, enhances its attractiveness and potential for wider adoption.

Conclusion

The recent comeback of Dogecoin and the combination of positive signals hint that the cryptocurrency could be on the verge of a major surge. Dogecoin’s journey is not finished yet, as it has strong support and potential integration into Elon Musk’s other projects, such as Tesla. Though market trends are uncertain, it is evident that the DOGE community has much to anticipate in the upcoming days.

The post 2 Top Reasons Dogecoin Price Will Rally Soon appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am