The Dogecoin network has attracted significant attention from crypto investors since the profound victory of pro-crypto US candidates led by Donald Trump.
Amid the notable cryptocurrency market surge in the past few days, Dogecoin DOGE $0.16 24h volatility: 2.3% Market cap: $24.13 B Vol. 24h: $1.18 B , the largest meme coin secured through the proof-of-work (PoW) consensus mechanism, surged over 86 percent in the past week to retest the peak of November 2021, around 30 cents. The large-cap meme coin, with a fully diluted valuation of about $40 billion, registered a 200 percent spike in daily average traded volume to around $20 billion on Monday, November 11, during the early European session.
Following the notable spike in the past few days, Dogecoin is now the sixth largest crypto asset, having dethroned Ripple Labs-backed XRP XRP $2.05 24h volatility: 0.4% Market cap: $119.54 B Vol. 24h: $4.44 B , and Circle’s USDC USDC $1.00 24h volatility: 0.0% Market cap: $60.87 B Vol. 24h: $13.19 B . However, the DOGE price against the US dollar has experienced a notable resistance of around 30 cents in the past 24 hours, thus resulting in a 5 percent drop to trade at about $0.28 at the time of this writing.
Major Factors that Led to the Dogecoin Price Pump
The notable Dogecoin spike in the recent past is a culmination of several bullish fundamentals in the recent past. In the top list, the recent victory of Donald Trump as the next POTUS, following the massive support of tech billionaire Elon Musk, has fueled Dogecoin’s bullish outlook.
With more than 5.3 million on-chain holders, the Dogecoin network has attracted more speculative traders seeking to diversify their crypto portfolios. Moreover, the DOGE/BTC pair has successfully rebounded from the 2022 bear market lows and invalidated the multi-year falling trend.
According to the latest on-chain data, the Dogecoin network registered more than 799k transactions in the past 24 hours.
Amid the ongoing spike in Dogecoin’s on-chain activity, more institutional investors have joined the meme coin’s movement ahead of the anticipated altseason.
Last week, Spirit Blockchain Capital Inc (CSE: SPIR), a blockchain tech company and digital asset management firm, announced a strategic acquisition of Dogecoin Portfolio Holdings Corp, a web3-focused company that supports the mainstream adoption of DOGE.
Meanwhile, Dogecoin is expected to be integrated with the family of unicorns owned by Musk, led by the X platform, thus increasing its overall utility.
What Next
According to a popular trader Peter Brandt, Dogecoin price has successfully broken out of an inverted head and shoulder following the recent pump towards 30 cents. As a result, Brandt highlighted that Dogecoin price is well primed to rally towards its all-time high in a similar trend as Bitcoin in the near term.
#Dogecoin $DOGE is about to go parabolic! Based on historical patterns, a potential top might lie between the 1.618 and 2.272 levels, translating to a price range of $3.95 to $23.26. pic.twitter.com/FqvC3AEF7o
— Ali (@ali_charts) November 10, 2024
Based on historical performance, crypto analyst Ali Martinez believes that the Dogecoin price could potentially peak between the 1.618 and 2.272 monthly Fibonacci extension. Moreover, the Dogecoin price has consistently closed above the 50-weekly Moving Average (MA). Additionally, Dogecoin’s weekly Relative Strength Index (RSI) has surged above the 70 percent level for the first time since April this year.
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