The positive sentiment exhibited by canine-themed memecoin Dogecoin (DOGE) has raised questions in the minds of many. One of these questions is whether DOGE will displace Ripple-associated XRP.
Dogecoin in the Ongoing Bull Market Cycle
According to market data, DOGE’s price was trading at $0.2161 at the time of writing. This recent price level marks a 5.6% increase in 24 hours and a weekly surge of 30.11%.
While there is a broader crypto market rebound, market analysts have commended the growth registered by DOGE in this short time. The coin has faced stiff resistance in the last couple of days.
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Very briefly, the coin showed strong buying pressure, rising by up to 27% daily. Still, analysts suspected that the rally could trigger a short-term reversal.
Also, the Bollinger Bands on the daily chart showed that DOGE has experienced high volatility recently. The current price action suggests that the tides have changed in favor of Dogecoin.
Several events surrounding the coin have raised suspicions of a potential golden cross in the short term. This bullish indicator occurs when the 50-day moving average exceeds the 200-day moving average. Though quite rare, such technical setups usually indicate a bullish move.
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Many analysts, including MikybullCrypto, believe that the volume of whale transactions and a jump in active addresses of 128% since August are pointers to the Golden Cross. Dogecoin has been on the receiving end of these factors in recent times.
Factors Fueling DOGE Price Surge
For now, a couple of events fuel the growing market surge in DOGE price. In the recently conducted United States election, Republican Presidential Candidate Donald Trump won his biggest opponent, Vice President Kamala Harris, by a reasonable percentage.
The news has brought some excitement and rebound to the broader crypto industry. More importantly, Elon Musk’s intense support for Trump increased DOGE’s traction.
Historically, DOGE has reacted positively to any statement and event linked to the billionaire. His posts usually trigger a rally for the memecoin, and often, there are suspicions that he intentionally makes such statements.
In August, Musk posted a cryptic message on X citing “D.O.G.E.” An Artificial Intelligence (AI)- generated image showed Musk standing behind a podium labeled “Department Of Government Efficiency (D.O.G.E.).”
This cryptic message caused the price of DOGE to roll up by 5% to $0.105 at the time. Despite the unrelated context, many believe the memecoin may have a place in a digital world that Elon Musk is advocating for.
What to Expect For Dogecoin
Going forward, increased user engagement and on-chain activity could trigger a further price surge for DOGE. Market observers are certain that a potential breakthrough for the coin lurks around.
The upcoming Golden Cross formation is a very bullish signal that could see the Dogecoin price rally in the short term. Also, there is growing optimism among technical analysts regarding DOGE’s long-term prospects.
Dogecoin’s daily active addresses suggest a clear rise in new users, active wallets, and non-zero-balance addresses. This outlook reflects increased user engagement and on-chain activity, and it aligns with the current DOGE price.
If the projections come as expected, the price of DOGE may breach the $0.3 price level, a point that might topple XRP in ranking.
