Dogecoin (DOGE) has seen a significant surge in the price within the last 24 hours. This is attributable to the increased buying pressure and positive market sentiment.
As of press time, the cryptocurrency surged approximately 7%, reaching $0.145. The reason for the rise is a combination of social media influence, technical market patterns, and growing investor activity.
The latest price surge of Dogecoin came after Elon Musk, the billionaire entrepreneur, made comments at a political event in New York. Musk’s reference to the “Department of Government Efficiency” (D.O.G.E.), an attempt to cut down on government spending has many investors, comparing it to Dogecoin.
This notion has boosted buying pressure of the cryptocurrency and is similar to previous occurrences where the Tesla and SpaceX CEO mentioned DOGE.
Musk has always played a crucial role in the volatility of Dogecoin in the market. Often referred to as the ‘Dogefather’, his posts and comments on social media have led to many a rally in the crypto market.
His impact was most clearly seen from March 2020 to May 2021, when Dogecoin’s value rose by 64,000% after several tweets. Similar to the past occurrences, Musk’s most recent comment has sparked the current rally and attracted retail investors.
Technical Analysis: Golden Cross Signals Bullish Momentum
In addition to Musk’s influence, further boosting of Dogecoin’s price is also being provided by positive technical indicators. A golden cross pattern has also appeared on the daily chart of Dogecoin, which is a significant technical pattern.
This appears when a shorter period moving average for instance the 50-day moving average trends upwards and crosses the 200-day moving average.
The golden cross, which was confirmed on October 25, may suggest a change in the market’s mood from negative to positive. This pattern is taken by analysts as an indication of continued upward move which may also contribute to the increase in the price of Dogecoin.
Presently, Dogecoin is hovering around 0.382 Fibonacci retracement level at $0.141. This level is considered as a important level which can mark the further direction of the asset price.
Analyst Predictions Suggest 25% Upside Potential
Analysts say more upside may be on the cards for Dogecoin if it is able to clear the next resistance levels. Crypto Analyst Ali Martinez has predicted that Doge may rise to $0.175 following its breakthrough of the $0.143 resistance level, which could lead to a 25% surge in the coming weeks.
As noted by Martinez, the correction that took place in the previous week allowed investors to buy DOGE at cheaper prices and, therefore, create new buy signals.’
Dogecoin’s price rebound has outpaced the broader cryptocurrency market, showing relative strength compared to major assets like Bitcoin. The cryptocurrency’s price increased from a weekly low of $0.128 on October 26, a trend that may continue if DOGE maintains its current momentum.
If Dogecoin can hold above the $0.141 support level, analysts believe that the $0.156 and $0.171 price levels could be achievable by early November.
Increased Accumulation and Market Activity
On-chain data suggests that large Dogecoin holders, or “whales,” have been accumulating DOGE in recent weeks. Blockchain analytics platform Santiment reported that wallets holding between 10 million and 100 million DOGE have collectively added 17.64 million DOGE to their portfolios.
This trend of accumulation reflects growing confidence among larger investors regarding Dogecoin’s future price potential. Additionally, Dogecoin’s trading volume has seen a significant uptick, further supporting the current bullish sentiment.
Data from CoinMarketCap reveals that DOGE’s trading volume increased by over 90% in the last 24 hours, reaching $1.6 billion. Such a rise in trading activity often suggests heightened interest from both retail and institutional investors. This can contribute to stronger price movements in the short term.
