Dogecoin (DOGE) has been making headlines recently as analysts and traders have expressed their bullish sentiment towards the coin.
According to Altcoin Sherpa, a famous cryptocurrency analyst, if anyone likes to invest in meme coins, Dogecoin should still be the number one choice at present and in the future.
Retail Investors Drive Dogecoin Price
One of the main reasons Altcoin Sherpa believes in Dogecoin’s potential is the anticipated wave of retail investment. The analyst believes that retail investors will eventually “buy in,” sending DOGE prices higher.
Dogecoin's popularity among retail investors was a major factor in its previous price surge, a trend that is expected to continue as the cryptocurrency market gains mainstream attention.
Elon Musk's Influence on Dogecoin Price
Altcoin Sherpa also highlighted the potential impact of a tweet from Elon Musk. Musk has been a vocal supporter of DOGE, frequently tweeting about the cryptocurrency and even calling himself “The Godfather.” The analyst suggested that “all it would take is one slow tweet from Elon to blow it up,” implying that a single endorsement from Musk could send DOGE’s price soaring.
Musk’s influence on the cryptocurrency market, especially DOGE, has been well documented. His tweets often cause DOGE prices to spike.
Dogecoin liquidity and low downside risk
Another factor contributing to Dogecoin’s appeal as a safe haven is its high liquidity and relatively low downside risk compared to other meme coins. Altcoin Sherpa notes that DOGE “has high liquidity/low downside relative to other memes,” suggesting that investors can enter and exit positions more easily without significant slippage.
Furthermore, the analyst believes that Dogecoin is likely to outperform many other “shitcoins.” This implies that even in a market downturn, Dogecoin could fare better than other speculative coins.
Whales Accumulate DOGE
Adding to the bullish sentiment surrounding Dogecoin, trader Ali reported that Dogecoin whales are actively accumulating the cryptocurrency. According to Ali, these whales have been buying large amounts of DOGE to hoard, with the total value increasing to nearly $60BILLION.
The accumulation of Dogecoin by large investors, known as whales, is often seen as a positive sign for the coin's future price performance.
Trump elected US president
Elon Musk was a big supporter of Trump in the US election, and Trump has a vision of creating an environment to legitimize and recognize digital currencies as legitimate assets. Opening banks to store Bitcoin and other currencies as national assets has helped the cryptocurrency market grow strongly.
Musk owns a lot of DOGE so this coin will definitely be guaranteed a good ecosystem to thrive.
