Dogecoin (DOGE) gained more than 25% in just 24 hours with the new support provided by Elon Musk, establishing a strong position by displaying its highest performance this month.
This sudden surge has seen DOGE gain a massive 65% in the last 30 days, highlighting the fluctuations in the cryptocurrency market and revealing DOGE’s resilience to market volatility.
“The Elon factor is still not fully priced in for DOGE,” said the famous investor ‘unipcs’, indicating that the optimism surrounding the meme-focused cryptocurrency continues. Musk’s recent support for Dogecoin has drawn attention, especially with his proposal for a Department of Government Efficiency (D.O.G.E). This proposal has positioned DOGE as a major player in government efficiency discussions, while sparking innovative interest and discussion in the crypto community. Musk’s influence in both the tech and finance worlds continues to play a major role in DOGE’s price movements.
Trump’s Likely Victory and Market Reaction
The cryptocurrency market quickly reacted to the possibility of former President Donald Trump winning again. Bitcoin (BTC) and DOGE experienced significant price increases with this development. According to Fox News, Trump’s political resurgence has created an optimistic atmosphere in the market as he is perceived as an anti-crypto figure among traders. This sentiment was reflected in the liquidation of short positions exceeding $30 million in the DOGE futures market, indicating strong bullish momentum.
Rising Demand and Investor Sentiment in Futures Market
As of this week, the number of open interest in the DOGE futures market has increased to 8.30 billion tokens, which is seen as a sign of increasing demand among investors. Open interest, which was at 7 billion tokens in previous days, indicates that investors have greater expectations for DOGE’s future price movements. High liquidity and increasing trading volumes indicate that investors are optimistic about DOGE.
Interaction of Other Meme Coins with DOGE
The bullish sentiment surrounding Dogecoin has also positively impacted other meme-themed cryptocurrencies. Tokens such as Shiba Inu (SHIB), Floki (FLOKI), and Bonk (BONK) have seen their value increase by over 10% during this period when DOGE gained momentum. These altcoins have increased by an average of 16%, compared to the 7.2% increase in the CoinDesk 20 index, reinforcing the market trend driven by DOGE.
Future Outlook and Analyst Forecasts
The general sentiment among analysts is optimistic about the future of DOGE and its related tokens. Investor ‘unipcs’ suggested that DOGE and the newly developed D.O.G.E Ethereum token will see even more interest, suggesting that the current excitement is just the beginning. “Many people are not fully considering how high these assets can go,” unipcs said, adding that there could be a huge media frenzy over the impact of Musk’s support for Trump on DOGE’s valuation.