Dogecoin is experiencing significant price increases as the overall cryptocurrency market shows signs of correction due to profit-taking by investors.
The resurgence of Dogecoin stems from clearer policies for digital assets in the U.S. and a strong influx of capital into meme coins, propelling DOGE to surpass the $0.25 mark from $0.20 in just a week.
MAIN CONTENT
The Genius Act helps improve the legal framework, strengthening confidence in the cryptocurrency market.
Over $17 billion flowed into meme coins in July, with Dogecoin leading thanks to its strong brand and deep liquidity.
The technology partnership with Solana and strong activity from cryptocurrency whales is driving DOGE's upward momentum.
Why is Dogecoin experiencing a strong price increase?
According to expert Ali Martinez, the passage of the Genius Act in the U.S. House of Representatives is a major boost that creates a clearer legal framework for cryptocurrencies. This act not only enhances reliability but also helps promote broader acceptance for tokens like Dogecoin.
Additionally, in July, meme coins recorded a huge inflow of about $17 billion, with DOGE maintaining its leading position thanks to its popular brand and superior liquidity, dominating among traders seeking quick profits.
Dogecoin is a clear testament to the appeal of meme coins amid a stagnant market. With clearer regulations and significant capital inflows, DOGE is setting a new trend in the cryptocurrency sector.
Ali Martinez, Cryptocurrency Analyst, 07/2024
How do technological upgrades and whale activity affect things?
According to updated data from Ali Martinez, large investors purchased over 1 billion DOGE, equivalent to about $250 million in just 48 hours, demonstrating the strong purchasing power of whales.
Dogecoin has just integrated through the Wormhole ZK bridge on Solana, expanding its applications into DeFi and NFT, no longer limited to memes and tipping features. This is an important technological advancement that increases DOGE's utility and attracts more investors.
At the same time, Bit Origin announced a $500 million fund to develop Dogecoin's treasury, contributing to increasing liquidity and stability for this asset.
The expansion of Dogecoin into the DeFi ecosystem on Solana not only increases utility but also strengthens DOGE's long-term position. The involvement of whales and large investment funds is a positive signal for the future.
CEO of Bit Origin, 06/2024
How is Dogecoin's price forecast?
Expert Ali Martinez predicts that DOGE could hit a resistance level of $0.27 in the short term. If it breaks through this level and maintains it, the next target is between $0.30 and $0.36, and it could even reach above $0.50 if the upward momentum continues.
Currently, technical indicators such as RSI and MACD maintain positive signals, with no signs of overbought conditions. Breaking through previous resistances attracts additional buying pressure from trend-following investors, creating a second wave of buying.
Frequently asked questions
What is Dogecoin and why is it popular?
Dogecoin is a popular meme coin with a strong brand and large community, making it a top choice in the meme cryptocurrency group and for short-term trading.
How does the Genius Act affect the price of Dogecoin?
The Genius Act creates a clear legal framework, increases investor confidence, contributing to the influx of capital into Dogecoin and the cryptocurrency market.
What role do cryptocurrency whales play in DOGE's price fluctuations?
Whales buying billions of DOGE help increase liquidity, support prices, and create a 'revival' effect for this coin recently.
What does the integration with Solana mean for Dogecoin?
Using the Wormhole ZK bridge on Solana expands DOGE's applications into DeFi and NFT, enhancing diversity and long-term growth potential.
What price can Dogecoin reach this year?
Experts say that if DOGE breaks through the $0.27 level, it could rise to $0.30-$0.36 and approach $0.50 if the positive trend is maintained.
Source: https://tintucbitcoin.com/why-dogecoin-doge-is-increasing-in-price/
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