In recent years, certain cryptocurrencies have experienced substantial price surges. Many may have noticed that this asset class has outpaced the performance of many of the highest-growth stocks during various rallies. The post-pandemic surge in this sector made millionaires out of average investors – and we’re all after a good get-rich-quick option, after all.

Of course, meme cryptos often saw some of the biggest surges. Valued on little less than their growing communities and the value traders placed on these digital assets, popular meme tokens such as Dogecoin (DOGE-USD) have taken off, for this reason. Launched in 2013, Dogecoin gained significant traction from the market in 2020 and 2021, as prominent individuals touted the token as a potentially decentralized payment method of the future. For those who may not be aware, Tesla (NASDAQ:TSLA) CEO Elon Musk has been among the most prominent supporters of Dogecoin in the past, and has continued to provide supportive commentary over time.

These catalysts, as well as a growing community, have led Dogecoin to incredible returns since its inception a little more than a decade ago. A $1,000 investment in Dogecoin when it launched would be worth just shy of $215,000 today. Accordingly, there are plenty of investors out there looking for an asset that can run that may consider Dogecoin on significant upside momentum.

Let’s dive into what’s created these past rallies that have taken Dogecoin to its current level, and where the experts think this token could be headed from here.

Key Points About This Article:

• Dogecoin has been among the best-performing digital assets in the crypto space, and continues to be a top token traders watch closely.
• Much of this has to do from the tokens previous returns of more than 21,000%, with varying price predictions as to where this token could be headed from here.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Dogecoin Gains Momentum

As one of the largest meme coins in the market, Dogecoin now trades in line with the overall crypto market. That’s not surprising, given the fact that this token now trades at a fully-diluted market capitalization of more than $17.6 billion. That’s big enough to move markets, and certainly benefit from market-wide swings in sentiment.

Thus, it should be no surprise that the recent move by the Federal Reserve to cut its overnight lending rate led to a boost in market optimism among all cryptocurrencies, with Dogecoin being among the key outperformers. Many investors continue to view Dogecoin as a leveraged way to play broader market trends, and I think that’s the right way to view this token. If the market goes up, one may reasonably expect Dogecoin to see an amplified surge to the upside.

This recent momentum has been noted by some traders as a move that could last as long as three months, at least using historical data as a guide. It’s entirely possible that Dogecoin, which currently trades around $0.12 per token, to move toward a new high at some point in the next bull market cycle, according to various pundits and analysts in this space. And while I find such predictions hard to believe, looking at this token’s previous price action and momentum-related factors, it’s a possibility that I think could garner more interest the higher this token goes from here.

In essence, I view Dogecoin the way many experts do. As a momentum vehicle, there are few better cryptos in the market for investors to play. Until that changes, this is a token that could certainly see more upside from here, if this rally does indeed have legs.

Rallying On Elon Musk Catalysts

Elon Musk is, among many things, the self-proclaimed “Dogefather.” For Dogecoin holders, that’s been a very good thing, given the fact that most everything Mr. Musk touches has turned to gold. 

As mentioned, previous Elon Musk tweets have sent Dogecoin on a number of rallies in the past. Dogecoin holders continue to watch his X feed closely, for indications as to whether additional catalysts could be on the horizon, for this reason alone. Thus, it should be no surprise that a recent message from Musk that a possible “Department of Government Efficiency” under a future Trump administration could be possible led to one of the latest rallies in Dogecoin. This government organization would form an acronym spelling out “DOGE,” sparking excitement among Dogecoin investors.

Crypto projects are becoming increasingly political, as the political landscape continues to shift. It will be interesting to see how Musk’s newfound political affiliations and endeavors could impact Dogecoin as well moving forward. If anything, this is a key potential catalyst for investors to watch closely when it comes to this dog-inspired meme crypto.

DOGE Forecast

 

Knowing where Dogecoin has come from is one thing, and this token has certainly seen a number of impressive rallies. But for most investors, it’s where this token is headed that’s most important.

On this front, it may be worth taking a look at some top expert opinions of where DOGE could be headed from here.

Crypto analyst Changelly recently cited data which suggests DOGE could rise 605% to $0.6892 within five years, a peak anticipated by year-end but still below its all-time high of $0.7376.

For Dogecoin to reach $1, its market capitalization would need to rise from around $17 billion to $144 billion, based on the current supply of 144 billion DOGE. However, with 10,000 new DOGE added each time a block is mined, the necessary market cap will depend on the growing supply. The current price is $0.10, well below its May 2021 high of $0.73.

Thus, tracking this token’s price performance relative to its increasing supply will be important. If the Dogecoin community can find a way to make this token less inflationary, and spur demand from new investors, it’s unclear how high Dogecoin could be headed from here. Of course, given the volatility we’ve seen in the past, the inverse could also be true. This is an asset only the most risk-tolerant investors should consider, and it’s one I wouldn’t put significant risk capital into, but it’s also a token that’s going to be interesting to watch from here. 

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