Dogecoin Soars Again: Back to 2021 Levels
Dogecoin (DOGE) has once again drawn attention amid a widespread rally in the cryptocurrency markets. Emerging as one of the top-performing assets this month, Dogecoin surpassed the $0.4 level with a 50% increase in recent days, marking its first return to this level since 2021. Weekly gains exceeded 150%, allowing DOGE to outpace XRP and USDC, securing the sixth position in terms of market capitalization.
Renewed interest from individual investors has also reflected in Dogecoin’s trading activities. According to IntoTheBlock's analysis, over 6 million transactions occurred on Dogecoin last week, reaching the highest transaction volume recorded since February. This surge in transactions is an indication that Dogecoin's momentum continues to remain strong. Additionally, data from Santiment indicates an increase in the number of new wallets holding less than 100,000 DOGE over the past four weeks, signifying interest from smaller individual investors.
The recent rise of Dogecoin is particularly attributed to the positive sentiment spurred by Elon Musk's support during the Trump campaign. The increase in DOGE's value has led some crypto traders to set a $1 target. This milestone has been deemed significant for Dogecoin since it peaked at $0.7 in 2021.
The psychologically important $1 level has revived the popularity of "doge to $1" memes within the Dogecoin community. Analysts note that the "golden cross" formation observed in weekly charts presents a strong outlook for the fourth quarter. Some experts speculate that within this cycle, Dogecoin could reach price levels between $2 and $4.
As Dogecoin continues to rise by 12% today, it has achieved daily gains exceeding 25% over the previous two days. Displaying positive performance in a short timeframe, DOGE has surpassed XRP, becoming the sixth-largest cryptocurrency by market capitalization. As capital flows from Bitcoin into alternative assets, Dogecoin has been among the cryptocurrencies that benefit the most from this trend.
High-profile endorsements from political figures are also boosting DOGE's momentum. However, it remains to be seen whether these factors will be sufficient for Dogecoin to surpass the $1 level. Historical data indicates that DOGE has gained momentum, especially following election cycles, and this trend could potentially see it reaching the $1 target in the first quarter of 2024.
In the Dogecoin market, whales are also actively involved. Dogecoin is transitioning from being merely a meme coin to a more solid asset class within the crypto market. Recent analyses reveal that Dogecoin has outperformed Ripple in growth potential due to its robust performance.
Despite the increase in individual wallets, large investors known as "whales" have continued to accumulate Dogecoin over the past three months. This accumulation has led the total Dogecoin assets to approach the billion mark. During this period, the positions of these "whale" investors in Dogecoin could play a critical role concerning the long-term potential of the cryptocurrency.
Looking at DOGE’s long-term outlook, it's evident that the cryptocurrency conducted a similar rally during the April-May period of 2021. Currently stepping around the $0.4 mark, DOGE now appears approximately 75% away from its record level. However, the 150% increase recorded over the last two weeks has heightened predictions that it may soon reach a new record level amidst the continued positive outlook for cryptocurrency markets.
This expectation is bolstered technically by the “golden cross” formation, noted for the daily and weekly outlook as the 50 MA surpasses the 200 MA.