After Donald Trump won, crypto enthusiasts and investors showed interest in Dogecoin, leading to a 30% price surge.
Dogecoin, the largest meme coin secured through the proof-of-work (PoW) consensus mechanism, has surged over 86 percent in the past week to retest the peak of November 2021, which was approximately 30 cents, amidst the notable cryptocurrency market surge of the past few days. On Monday, November 11, the daily average traded volume of the large-cap meme coin, which has a fully diluted valuation of approximately $40 billion, increased by 200 percent to roughly $20 billion during the early European session.
Dogecoin has surpassed Ripple Labs-backed XRP and Circle’s USDC to become the sixth largest crypto asset, following the significant increase in the past few days. Nevertheless, the DOGE price has encountered considerable resistance of approximately 30 cents against the US dollar in the past 24 hours, resulting in a 5% decline to roughly $0.28 at this time.
Key Factors Contributing to the Dogecoin Price Increase
Several bullish fundamentals have culminated in the recent notable Dogecoin spike. The bullish outlook of Dogecoin has been further bolstered by the recent victory of Donald Trump as the next POTUS, accompanied by the substantial backing of tech billionaire Elon Musk.
The Dogecoin network has attracted more speculative traders seeking to diversify their crypto portfolios, as it has over 5.3 million on-chain holders. Additionally, the DOGE/BTC pair has recovered from the bear market lows in 2022, invalidating the multi-year downward trend.
The Dogecoin network has recorded over 799k transactions in the past 24 hours, as the most recent on-chain data indicates.
Institutional investors have increased their participation in the meme coin’s movement in anticipation of the upcoming altseason, despite the ongoing surge in Dogecoin’s on-chain activity.
Last week, Spirit Blockchain Capital Inc (CSE: SPIR), a digital asset management firm and blockchain technology company, announced the strategic acquisition of Dogecoin Portfolio Holdings Corp, a web3-focused company that advocated for the mainstream adoption of DOGE.
In the interim, it is anticipated that Dogecoin will be integrated with the X platform, which is the leader of Musk’s family of unicorns, enhancing its overall utility.
What is the next step?
Peter Brandt, a notable trader, has stated that the Dogecoin price has successfully exited an inverted head and shoulder pattern due to the recent surge to 30 cents. Consequently, Brandt emphasized that the Dogecoin price is well-positioned to ascend to its all-time high soon, following a similar trajectory to Bitcoin.
As indicated by historical performance, Ali Martinez, a crypto analyst, anticipates that the Dogecoin price may reach its highest point between the 1.618 and 2.272 monthly Fibonacci extension. Additionally, the Dogecoin price has consistently closed above the 50-weekly Moving Average (MA). Furthermore, Dogecoin’s weekly Relative Strength Index (RSI) has exceeded the 70 percent threshold for the first time since April of this year.
