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- Dogecoin (DOGE) could experience a strong rebound, supported by the break of a downtrend and positive technical analysis.
- Cosmic events, such as sending a physical Dogecoin to the moon, and the possible involvement of Elon Musk, drive optimism.
DOGE’s strength is rooted in its exceptional performance over time, especially during the bull run of 2021, where it experienced a staggering 65,393% upside. This performance translates to a 21.60% increase this year, outperforming meme counterparts such as Shiba Inu (SHIB) and Floki (FLOKI).
The “HODL” (Hold On to Dear Life) strategy, which involves holding a cryptocurrency for the long term regardless of price fluctuations, appears to be particularly effective with DOGE. Although Pepe’s (PEPE) has slightly outperformed, up 529% year-over-year, DOGE maintains its dominant position in the meme market.
Dogecoin’s steady market cap growth, currently at $12.09 billion, represents a significant milestone. Although slightly surpassed by Shiba Inu, whose market cap is half of DOGE, and leaving behind Floki without a billion market cap, DOGE’s relative stability suggests less volatility for investors.
However, despite this growth, DOGE’s 180-day MVRV ratio reveals a -99.98%, indicating that realized market value exceeds current market value. This could be interpreted as a sign that DOGE is currently undervalued, offering an attractive opportunity for long-term investors.
Dogecoin’s exceptional correlation with Bitcoin, with a correlation coefficient of 0.91 according to Macroaxis, suggests that DOGE closely follows the movements of the leading cryptocurrency. This alignment with Bitcoin could be crucial, especially with Bitcoin’s upcoming halving in 2024 and the possible approval of an ETF, factors that could boost the value of both cryptocurrencies.
DOGE is more volatile than BTC
Although DOGE is more volatile than BTC, its performance over the past 90 days, up 34.59%, demonstrates its ability to generate solid short-term gains. The Dogecoin community has also contributed to its attractiveness as a long-term investment by developing additional use cases.
Initially conceived as a joke, the Dogecoin blockchain now offers utility through “Doginals,” allowing users to inscribe text and images on Dogecoin’s smallest unit, “shibes.” This focus on utility could attract more holders, supporting the growth of the network and, potentially, an increase in DOGE’s price.
DOGE stands out in the memecoin space as the asset with the highest proportion of holders in profit, with approximately 55.17%.
More Memecoin Insights: https://t.co/n29ohjsRRM pic.twitter.com/GHyvIb5uHy
— IntoTheBlock (@intotheblock) December 2, 2023
While other meme cryptocurrencies, such as Shiba Inu and Floki, present specific use cases, they do not appear to have the ability to replicate Dogecoin’s exceptional performance in 2021. While a repeat of that success cannot be guaranteed, DOGE’s strong market position suggests that it could regain its place as the meme cryptocurrency with the highest market value.
Positive Signals for Dogecoin (DOGE)
Despite its subdued performance, Dogecoin has broken a multi-year downtrend line, indicating a possible bullish continuation as long as the coin remains above $0.65 support. With this technical signal in play, some analysts believe Dogecoin could experience a strong bullish rally in the coming weeks.
Popular trader @CryptoGodJohn, with more than 500,000 followers on X, has called Doge “the easiest trade of the month,” anticipating it to reach $0.13 before Christmas, which would represent a 62% upside. This optimistic outlook is also supported by @DaanCrypto, with nearly 350,000 followers on X, who predicts that $DOGE will reach $0.15 in the near future, noting its stability during the extreme volatility of the past week.
These price predictions appear to be backed by an unexpected driver: space technology. Pittsburgh-based aerospace company Astrobotic has plans to send a physical Dogecoin to the moon via its ULA Vulcan rocket in December of this year. In addition, the Dogecoin-inspired Doge-1 satellite is scheduled for launch in January 2024. This lunar mission could generate renewed interest from Elon Musk, as the project is conceived and executed by his aerospace company, SpaceX.
Although Musk has not explicitly endorsed Dogecoin since April of this year, when he changed Twitter’s iconic “Blue Bird” logo to the Doge symbol, he has recently been accused of insider trading due to this maneuver and faces a $258 billion lawsuit. Despitethis, optimists are confident that the upcoming launch of the Doge-1 satellite will bring him back into the fold.
The possibility of Elon Musk’s renewed involvement poses an interesting scenario for Dogecoin. As the cryptocurrency prepares for unprecedented cosmic events, investors may find reason to be optimistic about Doge’s future.
The combination of technical and fundamental factors suggests that Dogecoin could be on track for a bullish period that could exceed the expectations of many in the crypto space. As the market watches closely, the Dogecoin narrative appears to be taking a fascinating turn.
