TLDR:
Dogecoin price surged 10% in 24 hours due to several factors
Plans to enable smart contracts on Dogecoin network announced
Elon Musk continues to show support for DOGE
Dogecoin whales accumulated over 1.40 billion coins in 48 hours
DOGE broke above a falling wedge pattern, signaling potential upside
Dogecoin, the popular meme-inspired cryptocurrency, has experienced a significant price surge, rising by 10% in the past 24 hours. This rally comes as a result of several bullish developments that have caught the attention of investors and enthusiasts alike.
One of the primary drivers behind Dogecoin’s recent price increase is the announcement of plans to enable smart contracts on the Dogecoin network.
The QED protocol has partnered with Nexus to launch a zero-knowledge virtual machine (zkVM) on the network, which will allow for smart contract functionality.
This move is expected to boost DOGE’s adoption by adding more utilities to the meme coin, potentially putting it in competition with established blockchain platforms like Ethereum and Solana.
The partnership between QED protocol and Nexus aims to scale the Dogecoin network and provide tools for developers to launch various Decentralized Finance (DeFi) projects. This includes decentralized exchanges and non-fungible tokens (NFTs), opening up new possibilities for the Dogecoin ecosystem.
Adding to the bullish sentiment, Elon Musk, the world’s richest man and a long-time supporter of Dogecoin, continues to show his enthusiasm for the cryptocurrency.
Musk recently posted a picture of the Shiba Inu dog behind Dogecoin, referring to himself as the “Dogefather.” This ongoing support from Musk has led to speculation that his X platform (formerly Twitter) might enable DOGE payments when its payment service goes live.
“Call me the Dogefather” 一 Elon Musk pic.twitter.com/JAvJYMZJt7
— DogeDesigner (@cb_doge) September 10, 2024
Musk has also mentioned his desire to see Dogecoin accepted again as a payment method for Tesla merchandise, indicating that such a move might already be in the works. Additionally, he has stated that DOGE will be accepted at the futuristic supercharging station in Hollywood when it launches.
Another significant factor contributing to Dogecoin’s price rise is the accumulation of DOGE by large investors, commonly known as “whales.”
Data from on-chain analytics platform Santiment shows that these whales have accumulated over 1.40 billion DOGE coins in just 48 hours, valued at approximately $140 million. This substantial accumulation signals strong confidence in Dogecoin’s future price potential among large investors.
From a technical analysis perspective, Dogecoin has broken above a falling wedge pattern, which it had been trading within for several months.
This breakout typically signals a potential upside reversal and hints at a continued rally. Some analysts suggest that this could lead to a significant price surge of up to 72%, potentially bringing DOGE’s price to $0.19.
The Aroon indicator, which measures trend strength, also supports the possibility of a continued rally for Dogecoin. The Aroon Up Line is currently at 100%, signaling that DOGE is in a strong uptrend, with buying pressure keeping prices near recent highs.
However, for this rally to fully materialize, Dogecoin must first break through a key resistance level at $0.15. Successfully retesting this level could clear the path for the price to reach higher targets.
It’s worth noting that Dogecoin’s current market behavior bears similarities to its performance in previous market cycles. In the past, the DOGE-BTC pair experienced a period of stagnation and volatility before skyrocketing.
With the Bitcoin halving on the horizon, some speculate that DOGE could be positioning itself for another explosive rally….
The post Dogecoin (DOGE) Price Soars: Smart Contracts, Whale Accumulation, and Elon Musk Fuel Rally appeared first on Blockonomi.