Dogecoin, the king of meme currencies, is again capturing the spotlight while he regains his throne among the meme coins. According to price data from Coinmarketcap, Dogecoin is currently outperforming other meme coins in gains in both the 24-hour and seven-day period.
Even more impressive is that Dogecoin is not only outperforming its meme coin competitors. It is also surpassing all other major cryptocurrencies in the top 20 rankings by market capitalization.
As it stands, Dogecoin looks ideal for a rally to $0.2But what could be driving this rally?
What’s Behind DOGE’s Double-Digit Price Rally?
At the time of writing, Dogecoin price is posting double-digit gains across all major timeframes, with a notable 30% increase over the past seven days. A broader look at the cryptocurrency landscape reveals that this price surge is not unique to Dogecoin. Many other digital assets are also riding the wave of notable gains, fueled by Bitcoin’s current rally and its subsequent breach of $68,000 for the first time since June.
However, Dogecoin, which has largely followed Bitcoin’s gains since the beginning 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 began on Tuesday, October 15, along with other cryptocurrencies. However, the Dogecoin rally accelerated on Thursday, October 17. This was sparked by an unexpected move by Elon Musk’s Tesla. that transferred more than 750 million dollars of Bitcoin in new and undisclosed wallets.
Although the transaction was not directly related to Dogecoin, it sparked speculation among investors that Tesla could be transferring its assets to the meme coin, leading to a surge in demand for DOGE.
To add to the excitement, Musk briefly mentioned Dogecoin during a town hall meeting in Folsom, Pennsylvania, the same day. When asked if he would lead a new “Department of Government Efficiency” in reference 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 began to rush towards the meme currency again. This combination of speculation has caused a rush of new investments in Dogecoin, creating a fear of missing out (FOMO) among investors.
What’s next for Dogecoin price?
At the time of writing, Dogecoin is trading at $0.145, its highest point since June 13. As it stands, the meme coin has overcome the resistance at $0.14 and is on track to make strong momentum for further gains. In the case of a continuous rally and FOMO, The price of Dogecoin will steadily approach the price of $0.2 throughout the rest of October.
However, there remains a chance for DOGE to pull back to retest the $0.14 resistance before resuming the bullish move.
Featured image from Getty Images, chart from TradingView
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