The price of Dogecoin has hit a personal best, helped by growing hopes that Elon Musk’s X will soon begin payouts. The DOGE token has risen for six straight weeks, marking its longest run 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: Can It Reach All-Time Highs?
The likelihood of DOGE token jumping 60% from current levels and reaching its all-time high of $0.7383 during this crypto bull run is growing. The possibility of this rise comes after the coin surged above the key resistance level at $0.2275, its highest level in March this year. This was an important level because it was the neckline of a double bottom pattern that had formed several months ago.
Dogecoin 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, the asset can even rise by triple digits if a pattern occurs.
DOGE price has strong momentum as the Average Directional Index (ADX) 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 stochastic oscillator pointed upward. In addition, it jumped to the 38.2% Fibonacci retracement level. Thus, there is a possibility that the coin will continue to rise as investors target the next key resistance level at $0.7382, its highest point ever, which is about 60% higher than the current level.
On the downside, a fall below the key support at $0.2825, the 61.8% Fibonacci retracement level, would sap the strength of the bullish sign.
DOGE Price Has Bullish Catalysts
There are several reasons why Dogecoin’s price could hold up in the coming weeks. First, Elon Musk, who brought coins into the mainstream in 2021, has indicated that he has several of these coins in his portfolio. This is notable because Musk is the richest person on earth, with a net worth of nearly $350 billion.
The Trump administration also appointed Musk to head the Department of Government Effectiveness (DOGE). This department will help the government become more efficient by reducing waste. Notably, as an influential figure in the government, Musk can promote cryptocurrency-friendly policies.
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Secondly, Elon Musk hinted that X, formerly known as Twitter, will introduce a payment service that will help people easily send money. This would be an easy way to monetize the project since it has millions of users around the world. Analysts believe that Dogecoin can become an integral part of the payments industry.
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Meanwhile, Dogecoin volume has skyrocketed over the past few months. Data from Coingeckos shows nearly $20 billion in volume in the last 24 hours. This was a higher figure than the next ten meme coins combined. This is a sign that the coin is in high demand from investors in the spot market.
Dogecoin is also seeing demand in the futures market, where 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 possibility that we could see a DOGE ETF next year. Additionally, DOGE’s market capitalization has jumped to over $67 billion, making it one of the largest assets in the world.
The Crypto Fear and Greed Index has jumped to the extreme greed zone of 88, which is a sign that there is demand for these coins.
Read More: Dogecoin Price Soars Due to Significant Whale Accumulation; Will DOGE reach $1?
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