Dogecoin has once again emerged to take center stage, showing strong gains across major timeframes to reassert its dominance as a meme coin and break through into the top 20 cryptocurrency market capitalization rankings.
As investors keep an eye out for an increase to $0.2 mark, observers want to understand what factors could be behind its rapid price gain.
Driving Factors Behind Dogecoin’s Remarkable Gains
Recent weeks have witnessed Dogecoin experience an astounding 30% spike over just seven days. While not exclusive to Dogecoin alone, an overall upturn in cryptocurrency market led by Bitcoin’s push past $68,000 has also been evident – yet Dogecoin stands out with its rapid rate of growth relative to other leading digital assets such as Ethereum.
Dogecoin started to gain significant momentum around Tuesday, October 15, reaching its highest point on Thursday, October 17 – with this surge partly being spurred on by news that Tesla had transferred significant Bitcoin holdings into new wallets, sparking speculation of diversification into Dogecoin and increasing its demand significantly.
Elon Musk’s passing mention of Dogecoin during a town hall meeting ignited further interest among investors and enthusiasts, creating a greater Fear of Missing Out (FOMO), driving even further investments into Dogecoin.
What Lies Ahead for Dogecoin?
Dogecoin has recently experienced its highest trading level since June 13, breaking through $0.14 resistance level to set itself up for potential gains. Amid an exciting rally and widespread FOMO, evidence points towards Dogecoin’s steady march toward reaching $0.2 by October.
Even with its current optimistic outlook, there’s still the risk that Dogecoin could temporarily dip lower to test the $0.14 resistance before starting on another upward journey.