Dogecoin (CRYPTO:DOGE) is one top cryptocurrency that’s been absolutely skyrocketing this month. For investors who aren’t aware, this crypto project was created by its founders as a joke, using memes to create a community and reward its users for participating over time. 

The Dogecoin community has certainly profited from the recent politically-infused rally in crypto overall. With Donald Trump returning to the White House, investors have certainly re-jigged their expectations of how the crypto market may move from here. Whether that’s a dedicated Bitcoin (CRYPTO:BTC) reserve, or simply a more favorable regulatory environment, investors have plenty of drivers to consider as we head into what could be a historic bull market in this sector.

As a leading meme token, Dogecoin’s 142% rise in the week following the election is certainly something that shouldn’t surprise investors. After all, this token is among the most volatile in the sector, and often viewed as a way for investors to play the volatility of this sector (largely to the upside). Accordingly, speculative bets via derivatives contracts continue to power significant momentum-driven moves, which we’re seeing play out in market-beating gains during very bullish periods of market sentiment.

The question is whether such sentiment can continue, and if $1 Dogecoin could be ahead for investors looking to bet on this trend. Let’s dive into where Dogecoin could be headed, and why a $1 target may not be as crazy as people think.

Key Points About This Article:

• Dogecoin’s recent rally has certainly raised some eyebrows, but this token could clearly have much further to run from here.
• Let’s dive into what’s driven this rally, and what could propel this meme coin project toward a $1 per token valuation moving forward.
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It’s All About Politics for Dogecoin Investors

Dogecoin surged more than 20% on the Tuesday following the re-election of Donald Trump. Investors betting on a Trump and Elon Musk-led Department of Government Efficiency (“DOGE”), which unsurprisingly has been conceptualized by Musk using the Dogecoin meme, seem to believe that a Trump/Musk win should propel more attention to this project. With greater attention has generally come higher prices, so this recent move certainly isn’t surprising, to say the least. 

Now the seventh-largest cryptocurrency by market capitalization, these political tailwinds have remained strong and many crypto experts could believe could be the key driver behind another leg higher in this token. Now trading above $0.36 per token, a move toward the $1 level would imply a market capitalization of approximately $145 billion. Thus, if Dogecoin were a company, it would be among the top S&P 500 names – this is a massive valuation, and one which should obviously be taken into consideration by investors looking to potentially put capital to work in such a volatile asset.

That said, Dogecoin’s rise to prominence has been closely tied to celebrity endorsements from the likes of Elon Musk and others. And with Mr. Musk seemingly poised to receive even more airtime from the media, there are reasons why this community remains steadfast in their belief that new highs could be in order moving forward.

We’ll have to see whether these political tailwinds taper off. But for now, it’s clear momentum is flowing in the right direction for meme coin holders.

Analysts Remain Bullish On Where This Meme Coin Could Be Headed

It’s important to note that it’s not just retail investors who are increasingly growing bullish on Dogecoin. A number of top crypto analysts and experts believe this token could be headed for new all-time highs in short order.

Veteran trader Peter Brandt compared Dogecoin’s current price movement to Bitcoin’s 2015-2016 trend, citing technical similarities like a “blow-off top” and falling wedge correction. Brandt suggested Dogecoin might soon see a major trend reversal, akin to Bitcoin’s May 2016 phase when he first invested in BTC.

Brandt is one of the top talking heads praising Dogecoin as a prime example of an asset which moves according to classical charting patterns. Such patterns are often used by traders to predict where prices will go over various time frames. And with little else to go on when it comes to valuing digital assets (investors don’t have the luxury of cash flows and other metrics to value these assets), technical analysis is increasingly important. Thus, many investors pay attention to what the likes of Brandt and others have to say on this front. 

In terms of where analysts have pegged the value of Dogecoin at for 2024, estimates range from $0.085 to $0.45. By 2025, forecasts turn optimistic, with potential highs from $0.39 to $2.20. Thus, according to the smart money out there in the crypto world, a $1 price target isn’t as insane as many believe it to be. 

Dogecoin Could Hit $1 Per Token

At this point in time, I think it’s entirely possible that this top meme token breaks through the $1 level next year. Of course, plenty will need to go right for this to happen. Investors will need to see the politically-infused sentiment surge continue, and likely a few other catalysts come about to make such a dream a reality. However, it’s becoming increasingly clear that crypto in general is seeing increased interest from a broader swath of investors as an asset class to hold. With greater legitimacy comes greater interest from institutional investors, and I wouldn’t be surprised to see at least some institutional capital flow into more risk-heavy assets such as Dogecoin over time.

That said, it’s worth noting that this meme coin has seen large drops in the past. If we do see interest in highly-speculative assets wane, this is a top token that could see big downside from here, especially considering its current valuation.

I’m viewing Dogecoin as an intriguing asset worth keeping an eye on right now. I don’t have any positions here, but this is a top way I’d play sentiment surges over the near-term in this space, if I had the inclination to do so. Trade accordingly.

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