Dogecoin surges 19%: Here are 3 reasons why analysts expect more gains!
Dogecoin has experienced a sustained uptrend over the past month as it rose by 19.36%.
- DOGE has surged by 19.36% over the past month.
- Strengthening fundamentals and historical performance suggest an upcoming rally.
Dogecoin [DOGE], the largest memecoin by market cap, has made significant gains on monthly charts. Since making a lower low of $0.08 in early September, it has consistently made highs.
In fact, as of this writing, DOGE was trading at $0.1184. This marked a 19.36% surge on the 30-day chart and a 9.14% increase in the past week.
However, the last 24 hours have seen a decline with the memecoin dropping by 3.65%.
Despite the downside on the daily charts, overall gains have left analysts betting big on memecoin’s trajectory. One crypto analyst has suggested an upcoming rally citing the sustainability of three factors that could drive DOGE’s surge.
Factors that could drive Dogecoin’s surge
The analyst cited historical performances and their relationship with the current market trend.
According to the analyst, whenever DOGE breaks out from a descending channel, it makes considerable gains. As such, this breakout was confirmed in the past week signaling that an upcoming uptrend is on the horizon.
Equally, the analyst pointed out that Dogecoin experiences exponential increases in percentage gains every cycle. For instance, during the first cycle, Doge saw a 9363% increase and a 29626% surge in the second cycle.
This implies that in every cycle, DOGE sees more increases compared to the previous cycle. Thus, holding that factor constant, the next cycle will even see more gains.
Further, various other factors in the current market could position DOGE to a historical surge. Firstly, increased adoption as the memecoin has experienced a consistent growth in transactions which could lead to higher demand.
Secondly, DOGE’s price affordability as the memecoin has lower price point compared to other cryptos which will attract more investors, potentially leading to a broader investor base.
Finally, increased technological upgrades will help DOGE rise further. As such, enhancements like faster transaction processing and improved security could further bolster Dogecoin’s utility and appeal.
Therefore, based on these developments as pointed out by the analyst, DOGE could see further gains in the upcoming cycle.
What DOGE charts say
Undoubtedly, the analyst makes a compelling case for Dogecoin’s future price movement. The question is, what do other fundamentals suggest?
For starters, Dogecoin’s number of transactions has surged outpacing all other memecoins. According to IntoTheBlock, DOGE has seen an exponential surge in transactions in the past week.
As such, the memecoin saw 782k transactions the past week which is 74.45% of all memecoin transactions in that period. This shows an increased number of active users and interaction with the network suggesting strengthening fundamentals.
Additionally, the past week has seen most investors take long positions for DOGE. This was indicated by a positive funding rate aggregated by the exchange over the last seven days.
Such market behavior means that investors are going long while paying a premium to hold their positions. This shows confidence in the memecoin’s direction.
Finally, Dogecoin has seen positive large holders netflow for the last six days. In short, a surge in large holders’ netflow can be seen as accumulation from large players, while drops point to reduced positions or selling.
With a sustained positive netflow, it implies that large holders are increasing their positions.
Read Dogecoin [DOGE] Price Prediction 2024-2025
Simply put, DOGE is experiencing a strong upward momentum supported by strengthening fundamentals. Therefore, if this market sentiment holds, DOGE will reclaim the $0.12 resistance in the short term.
A breakout from here will see a surge to $0.135.
