Here’s why analysts think Dogecoin (DOGE) has more room to grow 
Cryptocurrency Nov 17, 2024 Share
Amid the ongoing post-election cryptocurrency rally, Dogecoin (DOGE) has surged past critical resistance levels, signaling robust bullish momentum.
The meme-inspired cryptocurrency is riding a wave of renewed investor optimism, with analysts setting sights on its next major target of $0.50.
By press time, DOGE was trading at $0.36, up 0.72% in the past 24 hours. On the weekly chart, the cryptocurrency has posted an impressive 67% surge.
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This rally comes despite lingering concerns over its market cap and the typical “sell the news” narrative, both of which have so far failed to suppress its upward momentum.
Rally fueled by renewed sentiment
Dogecoin’s ability to defy market skepticism is once again on display, as it continues to capitalize on sentiment-driven momentum, repeatedly outperforming expectations.
Critics argue that its market cap might limit further growth, but the current trend suggests otherwise.
Interestingly, Ali Martinez, in a recent X post, noted that Dogecoin’s recent price surge has not yet been matched by a peak in public interest.
Data shows that while the coin has gained significant traction in recent months, its “interest over time” remains well below its 2021 highs. This gap signals untapped potential, as sentiment and attention have historically been powerful catalysts for DOGE.
DOGE price and interest over time. Source: Ali Martinez /X
Analysts suggested that if Dogecoin can rekindle the level of enthusiasm seen during its previous rallies, there is ample room for further price appreciation, proving yet again that DOGE operates on its own unique market dynamics.
Technical analysis signals a bullish continuation
On the technical side, DOGE has formed a bull flag pattern on the hourly chart, signaling the possibility of a bullish continuation.
Currently trading around $0.373, an hourly close above the key resistance at $0.40 could confirm the breakout and trigger a rally toward $0.85.
This setup aligns with Dogecoin’s history of explosive price action following periods of consolidation, further boosting optimism among traders.
DOGE/USDT one-hour chart. Source: Ali Martinez
TradingShot’s analysis aligns with this outlook, suggesting that if Dogecoin sustains its rally, a medium-term target of $3.50 is achievable. This aligns with its history of explosive price action following periods of consolidation.
Further fueling optimism, the number of Dogecoin millionaire addresses has surged during this rally, indicating rising investor confidence. With technical and on-chain metrics pointing to underlying strength, Dogecoin appears well-positioned for continued growth.
Market optimism from key developments
Recent developments have further bolstered market optimism for Dogecoin.
Notably, a lawsuit against Elon Musk alleging price manipulation of DOGE was withdrawn, removing a cloud of uncertainty surrounding the meme token. Musk’s influence, coupled with the meme coin’s cultural significance, continues to fuel enthusiasm for Dogecoin.
In addition, Musk’s involvement in the newly established U.S. Department of Government Efficiency (D.O.G.E.), alongside entrepreneur Vivek Ramaswamy, has generated further intrigue.
Announced by President-elect Donald Trump on November 13, the department aims to streamline federal operations by reducing wasteful government expenditures.
Musk’s appointment to lead this initiative has sparked discussions about economic freedom, with Coinbase CEO Brian Armstrong expressing optimism about enhancing efficiency in government spending.
Armstrong’s support and Musk’s alignment with Dogecoin’s community have further amplified positive sentiment.
Cautious optimism
While Dogecoin’s rally is promising, investors should remain cautious of potential resistance at $0.40, a key psychological level. Failure to break and sustain momentum above this threshold could lead to short-term retracements.
However, with market enthusiasm, technical setups, and Musk’s influence driving the narrative, Dogecoin appears poised to maintain its upward momentum. Investors will closely watch how it navigates these critical levels in the coming days.
Featured image via Shutterstock