Why Dogecoin price is still running toward $2

Dogecoin (DOGE) Price Gains Momentum

Despite a broader cryptocurrency market recovery, Dogecoin (DOGE) has experienced a slight decline of 3.5% in the past 24 hours, currently trading at $0.3663. However, several factors suggest that the world's largest memecoin holds potential for further appreciation:

Whale Activity Boosts Price

A significant driver behind the recent price surge in Dogecoin is the increased activity of whales, investors who hold substantial amounts of the cryptocurrency. Data from Santiment indicates a surge in whale transactions involving Dogecoin, particularly among holders with balances between 10 million and one billion DOGE.

This buying activity suggests that large investors accumulated DOGE when the price dipped to $0.33 on January 21, anticipating future price increases.

US Government Website Exposure

The appearance of the Dogecoin logo on the official website of the newly established US Department of Government Efficiency (D.O.G.E.) has also boosted investor sentiment. The association with a government initiative led by Elon Musk, a vocal supporter of Dogecoin, has brought unprecedented visibility to the cryptocurrency.

Potential Dogecoin ETF Approval

Speculation is mounting around the potential filing and approval of a Dogecoin exchange-traded fund (ETF). A wave of ETF filings has been observed following the resignation of former Securities and Exchange Commission (SEC) Chair Gary Gensler. Bloomberg Senior ETF analyst Eric Balchunas estimates the DOGE ETF could be approved by early April.

An ETF approval would provide a regulated investment vehicle for traditional investors, potentially increasing Dogecoin's exposure and legitimacy, thereby driving up demand and price.

Technical Analysis Points to Upside

Crypto trader Chandler highlights that Dogecoin's recent price action aligns with an accumulation trend observed since 2021. The Mayer Multiple Bands indicate the current price level is similar to that seen in January 2021, suggesting the potential for a breakout above $0.95.

Other analysts, such as WSB Trader and Trader Tardigrade, provide more aggressive targets of $1 and $2, respectively, based on technical chart patterns.

Disclaimer: This article does not constitute investment advice or recommendations. All investment decisions should be made after thorough research and careful consideration of individual circumstances.