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Dogecoin (DOGE), initially just a meme, is showing significant market power again. On October 16, 2024, the prominent cryptocurrency rose by 16% on a weekly basis, to the delight of investors.
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The price increase coincides with a huge increase in trading volume, which has increased by 90% in the last 24 hours, as reported by CoinMarketCap. DOGE is currently trading at $0.122, making it among the best performing cryptocurrencies in recent days.
Analysts are carefully monitoring these developments, some predicting a promising future for Dogecoin, despite unclear indications in the short term.
Bold Call for $24
Ali Martinez, a Dogecoin expert, has bullish prognosis with a canine-themed coin: DOGE could grow significantly and reach the $10 mark. On October 16, Martinez tweeted about the rising wedge patterns that have been around since 2017. He said that this trend shows a very positive long-term outlook which suggests that, in the long run, DOGE can achieve a value of $24.
To whoever said $10 #Dogecoin $DOGE impossible—show them this chart!
… And tell them to buy something using my referral link before it’s too late! pic.twitter.com/tqEqYwHEvx
– Ali (@ali_charts) October 15, 2024
Martinez highlighted two key support levels from 2021 to 2024—$0.003 and $0.07. He argues that these levels have contributed to the rise of Dogecoin, and expects a significant price increase from its recent support level.
Musk’s Influence Remains Strong
Meanwhile, it’s impossible to have a conversation on Dogecoin without Elon Musk being mentioned. The billionaire has been openly supporting DOGE saying ‘this is the crypto-crypto for the people’ earlier this year which has greatly appreciated its value.
It can be noted that, on several occasions, the price of Dogecoin increased by more than 50% in a short period of time whenever Musk publicly expressed his support for the cryptocurrency. Therefore, it is clear how much power it has when it comes to affecting the price of a coin.
Dogecoin’s large user base, coupled with Musk’s support, has put the coin in a position to keep up with major altcoins. This puts DOGE in a difficult position, straddling the line between a meme and a reliable cryptocurrency with lasting promise.
Variation in prices
There is however a small degree of pessimism that has crept into the market despite the prevailing optimism. Predictions are that Dogecoin may fall by an average of 13% and fall to $0.106 by mid-November.
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This short-term bearish view is given in conjunction with new technical indicators, especially the Fear & Greed Index, which currently stands at 71, indicating extreme greed among investors.
In the past month, 60% of Dogecoin’s price change has been called ‘green’, which has made many traders remain optimistic in its bullish reception, regardless of the predicted dip.
At the moment, the market outlook is in favor of buying opportunities however it is clear that the risk associated with volatility is very high for those investors who wish to capitalize on the current increase in DOGE.
Featured image from Pexels, chart from TradingView