Dogecoin (DOGE) has seen a massive surge, gaining 16% in just 24 hours and 25% over the past week. The popular meme coin is currently trading over $0.39, its highest level in weeks and approaching the $0.40 milestone.
Whales drive DOGE recovery
DOGE’s recent surge came after a period of consolidation during which whales accumulated a large amount of the coin. This accumulation phase set the stage for the coin’s breakout as it managed to break above the $0.34 resistance level.
Analysts believe that the renewed interest in DOGE stems from the recovery of the broader market and growing expectations that Elon Musk may be involved in shaping crypto-friendly policies under Donald Trump’s administration.
Focus on the $1 target price
Analysts remain optimistic about the future of Dogecoin and double down on predictions that the asset will reach $1 during the current bull market cycle. To achieve this milestone, Dogecoin's valuation needs to more than double, but its historic price trends and increasing adoption rates make this goal still achievable.
Dogecoin reached a peak of around $0.5 after a significant rise in early November, but encountered a sharp correction in December, falling to $0.26. However, the token has strongly rebounded, becoming a leader among meme-based cryptocurrencies.
What is the next step for Dogecoin?
With Trump's inauguration on January 20 and Musk possibly launching a DOGE department, the performance of Dogecoin remains a topic of keen interest. Whether it can maintain its upward momentum and break the $1 barrier remains to be seen.
