Dogecoin, the king of meme coins, is once again the king of meme coins attracting attention reclaiming its throne among meme coins. According to price data from Coinmarketcap, Dogecoin is currently outperforming other meme coins in terms of earnings on both a 24-hour and seven-day horizon.
What’s even more impressive is that Dogecoin isn’t just ahead of its meme coin competitors. It is also ahead of every other major cryptocurrency in the top 20 rankings by market capitalization.
In its current form, Dogecoin looks great for a rise to $0.2but what could be fueling this rally?
What’s behind the double-digit price enhance for DOGE?
At the time of writing, Dogecoin price is seeing double-digit gains on all major time frames, with a noticeable 30% enhance over the last seven days. A broader look at the cryptocurrency landscape shows that this price enhance is not unique to Dogecoin. Many other digital assets are also riding a wave of significant gains, spurred by Bitcoin’s continued rise and subsequent break above $68,000 for the first time since June.
However, Dogecoin, which has largely followed Bitcoin’s year-to-date gains, has now separated itself and is currently outperforming Bitcoin. To put this into context, Dogecoin is up almost 10% in the last 24 hours, compared to Bitcoin’s current gain of 0.52% in the same 24 hours.
Dogecoin’s rally this week began on Tuesday, October 15, along with other cryptocurrencies. However, on Thursday, October 17, Dogecoin’s rally gained full speed. This was triggered by the unexpected move of Elon Musk’s Tesla, who donated over $750 million Bitcoins to fresh, undisclosed wallets.
While the transaction was not directly related to Dogecoin, it sparked speculation among investors that Tesla might move its assets to the meme coin, causing demand for DOGE to enhance.
Moreover, Musk briefly mentioned Dogecoin during a town hall meeting in Folsom, Pennsylvania on the same day. When asked if he would lead a fresh “Department of Government Efficiency” in reference to his posts on the X social media platform, Musk simply smiled and replied, “Yes, Doge.”
This was enough to be a long-awaited signal for Dogecoin enthusiasts as many of them started rushing towards the meme coin again. This combination of speculation has resulted in a flood of fresh investments in Dogecoin, creating a fear of missing out (FOMO) among investors.
What’s next for Dogecoin’s price?
At the time of writing, Dogecoin is trading at $0.145, which is its highest level since June 13. In the current situation, the price of memes broke above the resistance at USD 0.14 and is on track for robust growth that will enable further gains. In the case of A further growth and FOMO, for the rest of October, the price of Dogecoin will steadily approach the $0.2 level.
However, there is a possibility of a DOGE retracement to retest the resistance at $0.14 before resuming the rally.
Featured image from Getty Images, chart from TradingView
