Dogecoin Back On Top In Meme Coin Race – What’s Driving This Double-Digit Price Rally?

Dogecoin, the king of meme coins, is once again capturing the spotlight as it reclaims its throne among meme coins. According to price data from Coinmarketcap, Dogecoin is currently outperforming other meme coins in gains in both the 24-hour and seven day timeframes. 

Even more impressively, Dogecoin isn’t just outpacing its meme coin competitors. It’s also outperforming every other major cryptocurrency in the top 20 rankings by market capitalization.

As it stands, Dogecoin looks prime for a rally to $0.2, but what could be driving this rally?

What’s Behind The DOGE Double-Digit Price Rally?

At the time of writing, the Dogecoin price is posting double-digit gains across all major timeframes, with a notable 30% increase over the past seven days. A broader look at the cryptocurrency landscape reveals that this price surge isn’t exclusive to Dogecoin. Many other digital assets are also riding the wave of notable gains, spurred by Bitcoin’s ongoing rally and subsequent break above $68,000 for the first time since June.

However, Dogecoin, which has mostly followed behind Bitcoin’s gains since the beginning of the year, has now detached and is currently outperforming Bitcoin. To put this in context, Dogecoin is up by almost 10% in the past 24 hours, compared to Bitcoin’s current 0.52% in the same 24 hours.

Dogecoin’s rally this week kicked off on Tuesday, October 15, alongside other cryptocurrencies. However, the Dogecoin rally shifted into full gear on Thursday, October 17. This was triggered by an unexpected move from Elon Musk’s Tesla, which transferred over $750 million worth of Bitcoin into new, undisclosed wallets. 

Although the transaction wasn’t directly related to Dogecoin, it sparked speculation among investors that Tesla might be shifting its assets into the meme coin, prompting a surge in demand for DOGE.

Adding to the excitement, Musk briefly mentioned Dogecoin during a town hall meeting in Folsom, Pennsylvania, on the same day. When asked if he would lead a new “Department of Government Efficiency” in reference to his posts on social media platform X, Musk simply smiled and responded, “Yeah, Doge.”

This was enough to be the much-awaited signal for Dogecoin enthusiasts, as many of them started to rush into the meme coin again. This combination of speculations has driven a flood of new investments into Dogecoin, creating a Fear of Missing Out (FOMO) among investors.

What’s Next For The Dogecoin Price?

At the time of writing, Dogecoin is trading at $0.145, its highest point since June 13. As it stands, the meme coin has broken above resistance at $0.14 and is on its way to a strong momentum to more gains. In the case of a continued rally and FOMO, the Dogecoin price will steadily approach the $0.2 price point for the rest of October.

However, there remains a possibility of DOGE retracing to retest the resistance at $0.14 before resuming the leg up.

Featured image from Getty Images, chart from TradingView