This impressive rally, a familiar sight for DOGE enthusiasts, owes much of its success to the ever-influential Elon Musk and the recent developments in his social media platform Twitter, now branded as X.
However, although its recent gains have been impressive, the meme-inspired cryptocurrency is yet to make a pump, and when it does, it will likely be a big one, crypto analyst Stockmoney Lizards said in a July 30 post.
In turn, a new major upswing could see DOGE’s price eclipse its previous all-time high, based on the meme coin’s historical moves associated with Bitcoin halving.
What is fueling DOGE pump expectations?
In short, Dogecoin is expected to make a significant move due to the cryptocurrency’s potential implementation on X as a means of payment.
The main factors driving those expectations are Musk’s remarks in a recent interview, where he said that over time, X “would become half of the global financial system.”
If done right, Musk added, “it would be by far the biggest financial institution.”
Given his comments, it is clear that Tesla’s (NASDAQ: TSLA) boss aims to turn X into a payments-focused social media platform. However, this is not something we did not know. Musk has previously expressed his intentions to turn Twitter into “X, the everything app.”
The platform would be similar to the Chinese super app WeChat which combines a variety of features including chat, dating, payments, and social media.
Finally, knowing that Musk is a big fan of crypto and Dogecoin, it’s obvious why many in the DOGE community expect to see the meme coin implemented on X.
Bitcoin halving – another potential DOGE rally driver
In his extended Twitter thread, Stockmoney Lizards explained there are two key drivers that could send DOGE’s price soaring, including the aforementioned X implementation, and the upcoming Bitcoin halving in April 2024.
“So, there are fundamentally two drivers of the price. The first one is the #Bitcoin halving in April 2024, as was the case in 2020 and 2016. The second driver is the highly probable implementation into X, which is destined to become the cornerstone of the financial system.”– he said.
The halving event reduces the rate at which new Bitcoins (BTC) are created, leading to a decrease in the supply of newly minted coins. Due to the fixed supply and increased demand as interest in Bitcoin grows, this scarcity is expected to drive up the cryptocurrency’s price, potentially triggering a rally in the broader crypto market as investors seek to capitalize on the anticipated gains.
Historically, DOGE’s price rallied significantly after each halving event, attaining a new all-time high every time.
If history is to repeat itself, the world’s largest meme cryptocurrency could surge to a new peak due to the combination of those two factors.
DOGE price analysis
At the time of writing, Dogecoin was changing hands at $0.0789, down 1.24% in the past 24 hours.
Over the past week, the crypto asset gained more than 2.6%, and over 20.3% on the monthly chart.
Year-to-date, DOGE has been underperforming the broader market, surging only 12% since the start of the year.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.