The price of Dogecoin has risen nearly 30% today, and trading volume has soared, indicating growing investor confidence in the cryptocurrency market. In addition, Dogecoin's surge has also driven gains in the broader meme coin sector. A top market expert predicted that the dog-themed meme coin will next reach $2.4, rekindling traders' hopes for the digital asset sector.

Dogecoin price to hit $2.4 as crypto market rebounds

Against the backdrop of the overall positive momentum in the cryptocurrency market, the recent price increase of Dogecoin has attracted the attention of investors. It is worth noting that the global cryptocurrency market value has once again exceeded the $3 trillion mark today after 2021, indicating that the market's interest in the digital asset field is growing.

Amid this, Ali Martinez, a well-known cryptocurrency market expert, is optimistic about the cryptocurrency. In a recent X post, Martinez shared a price chart of DOGE and said that the cryptocurrency could reach $2.40. Further fueling optimism, the analysis even stated that after hitting a short-lived $2.40, the top meme coin could target $18.

Additionally, Santiment highlighted the growing appeal of top meme coins to investors. The report highlighted that Dogecoin DOGE has experienced a significant influx of new retail investors, with 74,885 new wallets holding less than 100,000 DOGE in the past four weeks.

Meanwhile, shark and whale wallets initially dropped by 350 during this period but have rebounded in recent days, returning to 108. This renewed interest helped DOGE break through the $0.40 barrier for the first time in three and a half years today. Notably, analysts are now waiting for the next few days to determine if large stakeholders will continue to support this momentum, which could indicate a continued rise for this popular meme token.

Why is DOGE rising?

Broad optimism in the cryptocurrency market has pushed Bitcoin prices to a new high of nearly $90,000 today. In addition, the top altcoin and meme coin sectors are not far behind, setting new highs after months of highly volatile trading.

Meanwhile, Donald Trump’s victory in the US election also boosted the rise of digital assets. Specifically, Elon Musk’s focus on creating the Department of Government Efficiency (DOGE) also drove the price of Dogecoin up in recent days. The short name of the department proposed by Elon Musk, DOGE, boosted market sentiment while pushing up DOGE.

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DOGE prices rose by about 30% today, trading at $0.39, while its daily trading volume soared 107% to $40.36 billion. Notably, the cryptocurrency has hit a 24-hour high of $0.4359, the highest level since 2021. In addition, CoinGlass's derivatives data showed that Dogecoin futures open interest rose 12% to $2.9 billion, further reflecting the growing market sentiment.

However, despite this, investors should still proceed with caution as these assets are volatile. Despite the promising future outlook for Dogecoin prices, volatility still exists and can have a significant impact on traders if not traded with caution. Additionally, Ali Martinez recently highlighted a sell signal for Dogecoin, indicating that a pullback may occur before further gains.