Dogecoin, the king of the meme coins, is back capturing the spotlight as it regains its throne among meme coins. According to price data from Coinmarketcap, Dogecoin is currently outperforming other meme coins in terms of gains in both the 24-hour and seven-day time frames.
Even more impressive is that Dogecoin isn’t just outpacing its meme coin competitors. It also outperforms every other major cryptocurrency in the top 20 rankings by market capitalization.
As it stands now, Dogecoin looks good for a rally to $0.2but what could be driving this rally?
What’s Behind the Double-Digit DOGE Price Rally?
At the time of writing, Dogecoin price is posting double-digit gains across all major time frames, with a notable 30% increase in the past seven days. A broader look at the cryptocurrency landscape shows that this price increase is not exclusive to Dogecoin. Many other digital assets are also benefiting from the wave of remarkable gains, boosted by Bitcoin’s continued rally and subsequent break above $68,000 for the first time since June.
However, Dogecoin, which has largely followed Bitcoin’s gains since the start of the year, has now broken away and is currently outperforming Bitcoin. To put this in context, Dogecoin is up almost 10% in the last 24 hours, compared to Bitcoin’s current 0.52% in the same 24 hours.
Dogecoin’s rally this week started on Tuesday, October 15, along with other cryptocurrencies. However, the Dogecoin rally got into full swing on Thursday, October 17. This was caused by an unexpected move by Elon Musk’s Tesla, which has transferred more than $750 million of Bitcoin in new, undisclosed wallets.
Although the transaction was not directly related to Dogecoin, it led to speculation among investors that Tesla could move its assets to the meme coin, leading to a surge in demand for DOGE.
Adding to the excitement, Musk briefly mentioned Dogecoin during a town hall meeting in Folsom, Pennsylvania, on the same day. When asked if he would lead a new “Department of Government Efficiency,” referring to his posts on social media platform X, Musk simply smiled and replied, “Yes, Doge.”
This was enough to be the long-awaited signal for Dogecoin enthusiasts, as many of them started getting back into the meme coin. This combination of speculation has led to a flood of new investments in Dogecoin, creating a Fear of Missing Out (FOMO) among investors.
What’s Next for the Dogecoin Price?
At the time of writing, Dogecoin is trading at $0.145, its highest since June 13. In its current form the meme coin is broken above resistance at $0.14 and is on a strong momentum towards more gains. In the case of one continued rally and FOMO, the Dogecoin price will steadily approach the $0.2 price point for the rest of October.
However, a possibility remains that DOGE moves back to retest resistance at $0.14 before resuming upside.
Featured image from Getty Images, chart from TradingView