Dogecoin (DOGE) has witnessed an unbelievable rally over the previous few weeks. The asset is now the seventh-largest crypto challenge by market cap and is inching nearer to overtaking XRP because the sixth-largest challenge.
DOGE had a couple of gradual years in 2022 and 2023. The asset’s worth didn’t acquire momentum, and curiosity was low. An occasional Tweet from Elon Musk would herald some worth motion, however solely briefly. The unique memecoin’s unhealthy days are seemingly over as it might be on its technique to new heights.
3 Reasons Why Dogecoin Could Hit $2
1. Increased Whale Purchases
According to a Santiment chart shared by crypto analyst Ali Martinez, DOGE whales purchased 140 million tokens in 24 hours on Nov. 15, 2024. The 140 million tokens had been price round $56 million. The improve in whale purchases might imply that the large wallets are bullish on DOGE. Whale actions usually direct the worth of an asset. If we comply with the whale trajectory, the memecoin could attain a brand new peak.
https://twitter.com/ali_charts/standing/1857356986846752804
2. Elon Musk Enters Donald Trump’s Cabinet:
Musk is considered one of Dogecoin’s hottest supporters. Musk can also be probably the most important endorser of Donald Trump, the US President-elect. Trump has elected Musk to move the brand new Department Of Government Efficiency (D.O.G.E.). Musk had desired to arrange such a division beneath Trump’s management. DOGE’s worth shot up after the announcement. The improvement will doubtless have a optimistic impression on the memecoin’s worth.
3. Hasn’t Reached Overbought Levels:
Despite the unbelievable rally, DOGE is but to succeed in overbought ranges. This improvement suggests that there’s nonetheless loads of room for the memecoin to develop.
According to a chart shared by Ali Martinez final week, DOGE’s MVRV was at 45.65%. For DOGE, an MVRV of greater than 78% would recommend a market prime.
