• Thu. May 23rd, 2024

Dogecoin Surges Explosively As Altseason Kicks Off, What Pushed It?

Dogecoin Surges Explosively As Altseason Kicks Off, What Pushed It?

Dogecoin (DOGE) has been existing in the cryptocurrency space for some time now. Although it has so far not tried to distance itself from its ‘meme’ status, it has already shown some signs of hope for the investors. In that context, the digital coin is one of the famous coins in the cryptocurrency sector.

So far, Dogecoin has maintained its status as a good addition to any crypto portfolio. DOGE seems ready to take on 2021 as it has recorded a significant surge in value since the turn of the year.

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On January 2, the crypto experienced an unexpected surge in value gaining more than 120% within 24 hours. It has continued with that rapid uptrend registering a 125% increase in its value in the last 7-day period. Experts say that the current spike in value is linked majorly to bitcoin’s price explosion.

The history of this coin shows that it has the capability of delivering significant returns to match the top coins. This capability has drawn the attention of many investors into the crypto space. Technicalities of this surge are not yet known widely since many experts attribute it to endorsements from the household names in the financial sector.

Market Overview

Elon Musk, the Tesla CEO commented on the coin in a tweet. He has also been talking about the coin whenever he gets the opportunity. On the other hand, Angela White, an adult film star, tweeted on January 1, 2021, that she has been a Dogecoin investor since 2014. Her tweet came before the start of the current surge.

Earlier in the year 2020, many cryptocurrency fans on the TikTok social media app tried to pump DOGE up to a dollar per coin. However, that never happened but the cryptocurrency saw a lot of gains at that time.

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Despite Markus and Palmer developing DOGE for fun, this Shiba Inu dog token has remained somewhat valuable in the past seven years. The coin’s community is famous for being highly generous to charity and the crypto has even had its NASCAR vehicle too.

Although it is currently worth about a US penny and billions of coins are in circulation, it has so far managed to remain a top 35 coin market capitalization candidate.

Dogecoin Technical Analysis

In the past several days, Dogecoin has stood its ground against Bitcoin (BTC) since it has managed to record a 95% daily ROI against the flagship crypto. That is an incredible achievement considering that bitcoin is also in a price discovery phase setting an all-time high of $35,850 on January 6.

Dogecoin up by 120%. What’s in store for traders?
DOGEUSD Chart By TradingView

Historically, the unexpected surge in the price of Dogecoin has been seen as an indicator of the start of the alt season. Such spikes in DOGE price have coincided with a surge in the value of the general altcoin market. Last July, DOGE gained at least 150% within 48 hours rising from $0.0022 to $0.0055.

Dogecoin up by 120%. What’s in store for traders?
Dogecoin Chart Via Coin360

BTC’s market dominance was cut by 10% two months after DOGE’s surge, showing that altcoins were gaining value. Bitcoin’s dominance has surged to over 70% at some point but it is dropping gradually as the altcoin market heats up.

Dogecoin’s past performance is not a dependable indicator of what will happen in the future. But, it is worth noting that an increase in its price and the consolidation of bitcoin’s price may be a sign that an altcoin season is coming up.

DOGE/USD 1-day candle chart (Bittrex). Source: TradingView

DOGE/USD managed to break past the psychologically significant 1 cent mark which pushed it to levels not recorded since January 2018. Despite these successes, the coin remains significantly far off its all-time highs of $0.0153 from that same month.

Dogecoin is not the only altcoin that benefits from the adult entertainment sector recently. Late 2020, Pornhub disruption saw Verge (XVG) gain massively with the site remaining with the crypto as its only payment option.

Musk Gives The DOGE Some Energy

Elon Musk has always expressed his thoughts about the crypto space through his official tweets. Reports show that the Tesla stock has become a stinging thorn in the flesh of most bitcoin proponents since it is the only stock that outpaced the biggest crypto’s gains last year.

From hovering under $90 on January 1, 2020, by the end of the year, $TSLA traded at $729. That marked annual returns of over 700%. At the time of writing on January 6, 2021, Tesla is still rising closing the previous day’s trading at $735. However, it is yet to catch up with bitcoin’s 2021 performance.

In the meantime, Musk is showing little interest in engaging with the bitcoin idea but instead, he chooses to focus his tweeting energy on Dogecoin. After some interesting tweets during the holiday season, DOGE/USD surged by more than 125% in a week.

The Shiba Inu theme also appeared on Elon Musk’s 2020 Christmas greeting to his Twitter followers. Later, the revelation by actress Angela White that she has been an investor of DOGE for years added to the uptick of Dogecoin’s gains.

Also, many people believe that Tesla’s founder Elon Musk is responsible for bringing DOGE back into the spotlight in 2020. Musk tweeted on December 20, 2020: “One word: Doge”. Furthermore, there was some time when he referred to himself on his Twitter profile as the “Former CEO of Dogecoin.”

The Altcoin Season Is Here

Dogecoin mostly sets the pace for an altcoin rebirth that is continuously taking a hold of the crypto markets. As bitcoin somehow cools off, alternative cryptos are enjoying some surge in value after several years of blanket crypto winter.

Top altcoin performers for the past 7 days. Source: CoinMarketCap

Among them is market leader Ether (ETH) that has returned above $1,100 and has almost matched Dogecoin’s performance. Other altcoins that are performing well include Uniswap (UNI) which is up by at least50% in the last week and Polkadot (DOT) which is exploding into the new year.

Analysts now believe that it is now the right time for the altcoins to have their moment to shine. Their possible upside movement may surpass bitcoin’s gains since last summer. One analyst said:

“They said that altcoins will not do well anymore. No more altseasons. Bitcoin dominance towards 80%+. But then they didn’t meet 2021 yet.”

Social Media Is Pushing Dogecoin Higher

Australian adult star Angela White and Elon Musk are leading the social media brigade of high-profile endorsement of Dogecoin. The altcoin is leading gains in the first week of 2021 pushing above 1 cent per token. White tweeted about her DOGE investments and then updated her Twitter profile picture to show herself in Dogecoin merchandise. She wrote on January 2:

“Been HODLing my $Doge since 2014. MUCH PATIENCE. TO THE MOON #dogecoin.”

Whether it is true or not that White has been hodling a stash of Dogecoin for seven years it cannot be authenticated immediately but the price of the crypto has already responded.

Number of Twitter users Dogecoin (blue), Bitcoin (red). Source: TheTie

Today, DOGE is still reaping the benefits of that publicity, still up by over 100% in the past seven days. The token has remained on an uptrend despite downwards volatility for Bitcoin this week.

This January, social media activity has surged significantly. The number of Twitter users posting about Dogecoin has spiked to record numbers, according to data from TheTie.

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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.

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