- Dogecoin (DOGE) could hit $5, $400M market cap, and challenge top rank market cap altcoins as historical price action could repeat itself.
- Elon Musk’s effect, technical improvement, use as a payment method, and cultural effect at the origin of crypto memecoins could propel its price higher.
- Dogecoin’s (DOGE) price action suggests crypto whales and investors continue to accumulate as the price attempts to break its all-time high and create new highs.
Dogecoin (DOGE) once more has reminded many the feeling of what it means to hold memecoins after its break above $0.44, hitting a milestone in more than three years that saw the price of Dogecoin (DOGE) price decline to a low of $0.015 as many DOGE enthusiast became disgruntled with its price action in the bearish run.
With the strength of Dogecoin (DOGE) appealing to many traders and investors as speculation begins to highlight the least or base price for Dogecoin (DOGE) in the currency crypto bull run will be $1 based on key metrics and influence it has had in the past and current price actions.
The recent DOGE rally can be attributed to an increase in activity with investors and whales regarding owning DOGE with large wallets, which has accumulated this memecoin asset in large amounts, affecting its dynamics for a mega price pump.
With such speculation on the horizon and a growing ecosystem, here are the top 3 reasons why Dogecoin (DOGE) challenges major players and potentially hits the $5 mark with a market capitalization of $350-$400M as second on the price metric listed ahead of its price rally.
Dogecoin (DOGE) Growing Community and Elon Musk Effect
A major determining factor of DOGE’s existence and value to the cryptocurrency market remains its loyal community fanbase that has stood by its price despite the harsh bearish price, demonstrating such remarkable commitment, affecting its relevance in the crypto industry as a top memecoin.
Part of this community support has also come with celebrities such as Elon Musk backing Dogecoin with the just concluded U.S. election rolling out plans to implement a department of government efficiency (D.O.G.E.) as Elon Musk has been selected to lead this organization highlighting the DOGE effect.
Elon Musk’s tweets in the past have greatly influenced DOGE; as its community grows and influencers lend their voices for this memecoin, it could slowly rally and challenge many altcoins to the second position behind Bitcoin.
Technical Improvement and Use of Payment
Dogecoin’s early reputation was for the fun of it, but it has grown past this stage with many technological plans and its team actively improving its relevance to the crypto industry as the focus to make Dogecoin (DOGE) more robust, sustainable, and scalable to the crypto space.
DOGE’s developers have outlined ways to improve this memecoin to become a tool for high transaction speed, scalability, and security, with plans to make DOGE available for everyday transactions.
Developers would explore more advanced ways to achieve this process as plans continue to evolve regarding making DOGE more useful towards payment. As small-scale and large-scale businesses incorporate this memecoin as a mode of payment, the price of DOGE and its market capitalization could soar tremendously as a cheaper alternative payment currency.
DOGE’s Historical Price Relevance and Memecoin Effect
Source – Ali Chart on X
Historical price rallies from price bull cycles suggest the least rally for Dogecoin (DOGE) was 8,000%, followed by a 15,500% rally in the crypto bull run of 2021 when the price of DOGE hit a historical price mark of $0.7.
If history were to repeat itself, with an over 15,000% rally for DOGE in this cycle, we could see Dogecoin challenging many altcoin players and reclaiming the second spot just below BTC.
Another key factor for this rally is DOGE’s ingrained meme culture that has captivated the hearts of many internet users and has had a long memecoin history compared to newer memecoins surfacing.
Dogecoin’s cultural relevance and mass adoption could be enough to justify a massive rally above all odds in the coming bull market.
While these are speculations on DOGE price actions, it would be necessary to conduct research and avoid clouding your judgment by sentiment as memecoin is volatile despite possessing huge potential for better ROI.
