Dogecoin Price Hits Five-Month Highs As Market Signals Potential Rally

Summary:
• As the crypto market momentum strengthens, Dogecoin price has more than a market-wide sentiment to ride on.

Dogecoin price rose to the five-month highs of $0.168 on Tuesday, riding on a market-wide uptrend. The meme coin was up by 3 percent on the daily chart at the time of writing, raising its weekly gains to 16 percent. The upbeat market momentum is spearheaded by crypto bellwether Bitcoin, whose gains saw it break past the $70k mark on Monday.

What’s moving Dogecoin?

DOGE’s gains are also supported by a bullish sentiment surrounding Elon Musk’s push for the establishment of a Department of Government Efficiency (DOGE) in recent weeks. While it is unclear what role Dogecoin would play if such a department was to be established, meme coin supporters typically don’t need much to work with. These cryptos have repeatedly shown that a well-hyped-up idea is enough fuel to trigger a price upsurge.

In addition, Musk has been cosying up with presidential candidate Donald Trump in recent days, catalysing increased excitement over the crypto industry. Both Musk and Trump are known supporters of digital assets, with Trump having made NFTs a core part of his campaign. Musk, on the other hand, has been Dogecoin’s most famous supporter for years.

The fact that current crypto market upside is driven by Bitcoin is a significant departure from mid-year uptrends, which were substantially influenced by new-age meme coins like PEPE, BOME and DogWifHat. That could favour OG meme coins, Dogecoin and Shiba Inu, as it will ensure that the newer meme coins do not steal a disproportional amount of the limelight in case of a meme coin rally.

Dogecoin price prediction

The momentum on Dogecoin price will favour the upside above the pivot mark at 0.164. With the buyers in control, the first barrier is likely to come at 0.167. However, an extended control by the buyers will break above that mark, and could send the price higher to test 0.169.

Alternatively, moving below 0.164 will usher in bearish control. In that case, the first support could come at 0.161. However, a stronger downward momentum could break below that level and render the upside narrative invalid. In addition, the price could test the second support at 0.158.