Is Dogecoin’s Surge Over or Just Getting Started?

Dogecoin (DOGE), the cryptocurrency originating from a joke in 2013, has garnered significant attention in the crypto market, experiencing a surge of over 300% this year.

Analysts anticipate the potential for DOGE to reach $1 before year-end, aided by the recent U.S. elections that provided a boost to the crypto market. However, critics contend that its price may be hindered by concerns such as a high market cap and the tendency to "buy the rumor, sell the news."

In simpler terms, skepticism surrounds the potential for Dogecoin's further growth due to its already high market cap compared to other coins. A higher market cap necessitates a larger influx of capital to drive prices even higher. Additionally, traders who profited from the surge appear to be seeking short-term gains.

At the time of writing, DOGE has experienced a 4% gain in the last 24 hours, reaching $0.37. Nevertheless, the cryptocurrency has witnessed a decline in trading activity since the elections, with a drop in market cap from $17 billion on November 11th to $7 billion.

DOGE/USD Price Chart | Source: CoinMarketCap

Notably, Tesla founder Elon Musk has expressed support for the token and has been actively promoting it along with his involvement in the recent presidential campaign.

Despite the current setbacks, crypto analyst @ali_charts has a bullish outlook. Based on chart analysis, Ali postulates that Dogecoin's popularity has not peaked and predicts further momentum for the cryptocurrency.

"When you look at the interest in $DOGE over time, it isn't even at peak popularity yet. Long story short, #DOGE has waaay more room to grow. #HODL"

Source: Ali_Charts

Furthermore, another crypto analyst, Trader Tardigrade, identified a "Bull Pennant" pattern on DOGE's monthly chart, a bullish indicator signaling an impending upward trend.

Source: Tardigrade

According to Tardigrade, a similar pattern emerged earlier this month, leading to a 139% increase in Dogecoin's value. The current "Bull Pennant" formation suggests the potential for another significant rise, potentially reaching $0.90.

Analysts also highlight recent whale activity, with large investors purchasing substantial amounts of Dogecoin. Such actions indicate a positive outlook and suggest that the recent surge is not solely driven by short-term traders.

Source: Ali_Chart

In conclusion, while the future of Dogecoin remains uncertain, its ongoing growth and attention in the crypto market are undeniable. Whether it aligns with the skeptics' predictions or validates the bulls' optimism, DOGE continues to be a topic of interest and speculation.