Dogecoin (DOGE) has witnessed an incredible rally over the last few weeks. The asset is now the seventh-largest crypto project by market cap and is inching closer to overtaking XRP as the sixth-largest project.
DOGE had a few slow years in 2022 and 2023. The asset’s price did not gain momentum, and interest was low. An occasional Tweet from Elon Musk would bring in some price action, but only briefly. The original memecoin’s bad days are seemingly over as it may be on its way to new heights.
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3 Reasons Why Dogecoin Could Hit $2
Source – Token Metrics
1. Increased Whale Purchases
According to a Santiment chart shared by crypto analyst Ali Martinez, DOGE whales bought 140 million tokens in 24 hours on Nov. 15, 2024. The 140 million tokens were worth around $56 million. The increase in whale purchases could mean that the big wallets are bullish on DOGE. Whale movements often direct the price of an asset. If we follow the whale trajectory, the memecoin may reach a new peak.
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2. Elon Musk Enters Donald Trump’s Cabinet:
Musk is one of Dogecoin’s most popular supporters. Musk is also the most significant endorser of Donald Trump, the US President-elect. Trump has elected Musk to head the new Department Of Government Efficiency (D.O.G.E.). Musk had desired to set up such a department under Trump’s leadership. DOGE’s price shot up after the announcement. The development will likely have a positive impact on the memecoin’s price.
3. Hasn’t Reached Overbought Levels:
Despite the incredible rally, DOGE is yet to reach overbought levels. This development suggests that there is still plenty of room for the memecoin to grow.
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According to a chart shared by Ali Martinez last week, DOGE’s MVRV was at 45.65%. For DOGE, an MVRV of more than 78% would suggest a market top.
