Is Dogecoin’s Surge Over or Just Getting Started?

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As an analyst with over two decades of experience in the financial markets, I have seen my fair share of market trends that defied expectations. While many are quick to dismiss Dogecoin (DOGE) as a meme-based coin without substance, its recent surge and potential for growth cannot be ignored.

As a crypto enthusiast, I’ve found myself drawn to the intriguing rise of Dogecoin (DOGE) this year – a meme-inspired digital currency that initially started as a jest back in 2023. Remarkably, it has seen a staggering increase of over 300%, making waves in the crypto world.

Due to the recent U.S. election results boosting the crypto market, analysts speculate that Dogecoin (DOGE) might reach $1 by year-end. However, skeptics contend that its price may not rise further because of issues such as a decrease in “market value” and the prevalent “buy on rumor, sell on news” pattern.

Essentially, skeptics argue that Dogecoin might not see significant further growth due to its already substantial market value compared to other cryptocurrencies. As a larger market cap implies more capital is required to increase the price even more, some investors may be focusing on temporary profits rather than long-term holdings.

As of now, Dogecoin (DOGE) has increased by 4% over the past 24 hours and is currently priced at $0.37. Yet, its trading activities have decreased significantly since the election, with a drop from approximately 192% and a market cap of $17 billion on Nov. 11 to a -12% decrease and a current market cap of $7 billion.

It’s surprising given that the cryptocurrency is supported by Elon Musk, the founder of Tesla and a billionaire, who has been optimistic about it. Additionally, his involvement in the Donald Trump campaign played a significant role in Trump’s victory as President.

As a crypto investor, I find myself disagreeing with the general consensus. According to my analysis by @ali_charts, Dogecoin’s current popularity is far from its peak. Using chart analysis as his basis, Ali predicts that the public’s interest in $DOGE will continue to expand, suggesting that this cryptocurrency has yet to fully gather momentum and could experience further growth in the future.

Looking at the growing interest in Dogecoin (#DOGE) over a period, it’s clear that its popularity hasn’t reached its zenith yet. In essence, there’s still plenty of potential for growth with Dogecoin. So keep holding onto your coins (#HODL).

“Bull Pennant” Pattern Formed on Chart

In line with Ali’s optimistic outlook, another cryptocurrency expert, Trader Tardigrade, has pointed out a “Bull Pennant” formation on Dogecoin’s monthly graph in a recent tweet. This bullish pattern is indicative of an impending surge in the price trend for DOGE.

As Tardigrade notes, a similar pattern emerged earlier this month when Dogecoin saw a significant surge from $0.1677 to $0.4389 – an impressive 139% rise. Following this spike, the token experienced a slight retreat and has since leveled off, forming the ‘flag’ part of what appears to be a pennant pattern.

Currently, it appears that Dogecoin might be shaping up to create a second flag-like formation known as a “bull pennant”. Trading Grade foresees that if this pattern concludes, the price may soar as high as $0.90, which represents another possible increase of 139%.

Another thing to look at is recent whale activities. According to Ali’s tweet on Nov 15. Large dogecoin whales bought 160 million DOGE which at the time was $56 million. In short, while many see the recent surge as an opportunity to sell off, large investors see it as a chance to join to trend. 

It appears that the future development of Dogecoin remains uncertain and subject to much debate. Regardless of whether it aligns with the cautions from skeptics or fulfills the enthusiasm of optimists, there’s no denying that $DOGE remains a focal point in the dynamic world of cryptocurrency.

Also Read : Dogecoin Surges 89% After Trump’s D.O.G.E. Announcement

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2024-11-18 18:28