Dogecoin Jumps Over 16% In The Last Week — More Gains To Come?

Dogecoin (DOGE), initially a mere meme, is demonstrating significant market strength once more. On October 16, 2024, the prominent cryptocurrency surged by 16% in the weekly frame, to the delight of investors.

The price surge is accompanied by a substantial rise in trading volume, which has increased by 90% in the last 24 hours, as reported by CoinMarketCap. DOGE is presently trading at $0.122, positioning it among the highest-performing cryptocurrencies in recent days.

Analysts are closely monitoring these developments, with some predicting a more promising future for Dogecoin, despite ambiguous indicators in the short term.

A Bold Call For $24

Ali Martinez, a Dogecoin expert, has a bullish prognosis for the canine-themed coin: DOGE can increase substantially and hit the vaunted $10 mark. On October 16, Martinez tweeted over the rising wedge patterns that have been in place since 2017. He said that this trend shows a very positive outlook for a long period of time which suggests that, in the long term, DOGE could attain a value of $24.

Martinez emphasized two critical support levels from 2021 to 2024—$0.003 and $0.07. He asserts that these levels have contributed to Dogecoin’s upward trajectory, and he anticipates a significant price surge from its most recent support level.

Musk’s Influence Remains Robust

Meanwhile, it is impossible to have a discussion on Dogecoin without Elon Musk being mentioned. The billionaire has been openly supportive of DOGE saying ‘this is the people’s crypto’ earlier this year which appreciated its price significantly.

It can be observed that, on several occasions, the price of Dogecoin has surged by more than 50% within a short span of time whenever Musk publicly expresses his support for the cryptocurrency. Hence, it is clear how much power he wields when it comes to affecting the price of the coin.

The substantial user base of Dogecoin, coupled with Musk’s backing, has positioned the coin to frequently contend with significant altcoins. This positions DOGE in a compelling situation, straddling the line between a meme and a credible cryptocurrency with enduring promise.

There is however a slight degree of pessimism that has creeped into the market despite the prevailing optimism. Predictions are such that Dogecoin is likely to decrease by an estimated 13% and drop to $0.106 by the middle of November.

This momentary bearish view is offered alongside bullish technical cues, particularly the Fear & Greed Index, which currently stands at 71, indicating extreme greed among investors.

Over the past month, 60% of the price swings of Dogecoin have been termed as ‘green’, which has made several traders remain positive on its bullish trend adoption, irrespective of the forecasted dip.

At the moment, the market outlook favors buying opportunities however it’s clear that the risk associated with volatility is very high for those investors who wish to capitalize on the current upward movement of DOGE.

Featured image from Pexels, chart from TradingView