Dogecoin price analysis: here’s why DOGE could surge 60%

by Crispus Nyaga November 23, 2024 10 min read

(Originally posted on : Invezz )

Dogecoin price has broken a personal record, helped by the rising hopes that Elon Musk’s X will launch payments soon. The DOGE token jumped for six consecutive weeks, the longest rally since its inception. It jumped to a high of $0.4785, its highest level since 2021, making it one of the best-performing cryptocurrencies this year.

Dogecoin price analysis: could it hit its all-time high?

There are rising odds that the DOGE token will jump by 60% from the current level and reach its all-time high of $0.7383 in this crypto bull run. Odds of this rally happened after the coin jumped above the key resistance level at $0.2275, its highest level in March this year. That was an important level since it was the neckline of a double-bottom pattern that formed months ago.

Dogecoin has formed a golden cross on the weekly chart, a popular pattern that forms when the 50-week and 200-week Exponential Moving Averages (EMA) cross each other. In most periods, an asset can rise even by triple digits when the pattern happens,

DOGE price has strong momentum as the Average Directional Index (ADX) has jumped to 30, its highest level since June this year. This is one of the most popular trend indicators in the market, and is a sign of a potential rally.

The Relative Strength Index (RSI) and the Stochastic Oscillator have all pointed upwards. Also, it has jumped to the 38.2% Fibonacci Retracement level. Therefore, there is a likelihood that the coin will continue surging as investors target the next key resistance level at $0.7382, the highest point on record, which is about 60% above the current level.

On the flip side, a drop below the key support at $0.2825, the 61.8% Fibonacci Retracement level will invalidate the bullish sign.

DOGE price has bullish catalysts

There are several reasons why the Dogecoin price may continue in the coming weeks. First, Elon Musk, who took the coin mainstream in 2021, has indicated that he owns a bunch of them in his portfolio. This is a notable thing because Musk is the richest person on earth with a net worth of almost $350 billion.

Musk has also been appointed to lead the Department of Government Efficiency (DOGE) by the Trump administration. This department will help the government become more efficient by cutting waste. Notably, as an influential person in the government, Musk may promote crypto-friendly policies.

Second, Elon Musk has hinted that X, formerly known as Twitter, will introduce a payment service that will help people send money easily. That would be an easy approach to monetize the project because it has millions of users around the world. Analysts believe that Dogecoin could become an integral part of the payment industry.

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Meanwhile, Dogecoin’s volume has jumped sharply in the past few months. Data by Coingecko shows that the volume stood at almost $20 billion in the last 24 hours. That was a higher figure than the next ten meme coins combined. It is a sign that the coin is seeing a lot of demand from investors in the spot market.

Dogecoin is also seeing demand in the futures market, where the futures open interest has jumped to a record high of over $4.4 billion.

Meanwhile, with Elon Musk playing an influential role in the American government, there is a likelihood that we could see a DOGE ETF in the coming year. Besides, DOGE’s market cap has jumped to over $67 billion, making it one of the biggest assets globally.

The crypto fear and greed index has jumped to the extreme greed zone of 88, a sign that there is demand for these coins.

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