Dogecoin Reclaims Lead in Meme Coin Market Race

Dogecoin, often regarded as the leading meme coin, is once again stealing the limelight as it reestablishes its dominance among meme cryptocurrencies. As per the latest price information from Coinmarketcap, Dogecoin is currently surpassing its meme coin peers in terms of gains across both the 24-hour and seven-day periods.

What’s even more remarkable is that Dogecoin is not only outshining its meme coin rivals but is also outperforming every other significant cryptocurrency within the top 20 by market capitalization.

Presently, Dogecoin appears poised for a rally towards $0.2, but what factors could be influencing this surge?

What’s Fueling The DOGE Double-Digit Surge?

As of now, Dogecoin’s price is experiencing double-digit gains across all significant timeframes, with an impressive 30% rise over the last seven days. A broader examination of the cryptocurrency market indicates that this price surge isn’t limited to Dogecoin alone; many other digital assets are also benefiting from considerable increases, driven by Bitcoin’s ongoing rally and its recent breakthrough above $68,000 for the first time since June.

Nevertheless, Dogecoin, which has largely trailed behind the gains of Bitcoin this year, has now decoupled and is presently outperforming Bitcoin. To illustrate, Dogecoin has gained nearly 10% in the past 24 hours, while Bitcoin has seen only a 0.52% increase during the same timeframe.

Dogecoin’s rally commenced on Tuesday, October 15, in sync with other cryptocurrencies. However, the rally accelerated on Thursday, October 17, following an unexpected action from Elon Musk’s Tesla, which moved over $750 million worth of Bitcoin into new, undisclosed wallets.

While this transaction wasn’t directly linked to Dogecoin, it ignited speculation among investors that Tesla might be reallocating its assets into the meme coin, resulting in increased demand for DOGE.

To further fuel the hype, Musk briefly referenced Dogecoin during a town hall in Folsom, Pennsylvania, on the same date. When questioned about leading a new “Department of Government Efficiency” regarding his social media comments, Musk simply smiled and replied, “Yeah, Doge.”

This became the much-anticipated signal for Dogecoin advocates, causing many to flock back to the meme coin. This blend of speculation has triggered a surge in new investments in Dogecoin, generating a Fear of Missing Out (FOMO) among investors.

What Lies Ahead For The Dogecoin Price?

Currently, Dogecoin is trading at $0.145, marking its highest level since June 13. As it stands, the meme coin has successfully broken through resistance at $0.14 and is gaining momentum for further increases. Given a sustained rally and rising FOMO, the price of Dogecoin is likely to steadily approach the $0.2 mark throughout October.

However, there remains the potential for DOGE to retract and retest the resistance at $0.14 before continuing its upward trajectory.

Featured image from Getty Images, chart from TradingView