Dogecoin (DOGE) is once again capturing attention, trading at $0.1253 on October 16, up 9.20% in the last 24 hours, and surging 14.65% over the past week.
Its market cap climbed from $16.8 billion to $18.8 billion, with trading volume soaring by 96.85% to $2.03 billion in a single day. as per the latest data retrieved by Finbold from CoinMarketCap.
Moreover, DOGE leads the pack in the top 100 digital assets by market capitalization over the past day, triggering fresh speculation about where the meme coin could head next.
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Ali Martinez, a technical and on-chain analyst, has stirred up excitement with his bold post.
But not everyone is jumping on the $10 bandwagon. A more cautious retail trader responded,
“As a Dogecoin holder, I would love your chart, but as a realist trader, your target is impossible. Many trillions of dollars and many halvings are needed to achieve it.”
While optimism runs high, some traders remain grounded in the realities of market mechanics and Dogecoin’s vast supply.
Musk, Tesla, and DOGE
While Dogecoin’s sudden rally has intrigued analysts, trader Bluntz Capital pointed to something potentially brewing behind the scenes:
“$DOGE going mental today while all the other memes have been sliding. Something’s cooking, and I can’t help but feel it’s something Elon-related.”
With Tesla recently moving $740 million in Bitcoin, speculation is swirling in the DOGE space that Elon Musk—Dogecoin’s most influential supporter—could be involved in pushing the coin’s rally. Musk’s past tweets and influence have often sent Dogecoin’s price soaring.
Could DOGE break out again?
Looking beyond the rumors, technical analysis provides some context for Dogecoin’s recent performance.
Earlier this month, Martinez identified a multi-year descending triangle formation for DOGE, a pattern that historically precedes significant price surges. The chart highlighted how, after breaking out of downward trends, Dogecoin has repeatedly seen sharp gains, followed by corrections before longer-term rallies.
Martinez pointed to a 65% pullback in recent months that mirrors past patterns. After a similar pullback in the past, Dogecoin surged by 200% before correcting by 60%. If history repeats itself, Dogecoin could be on the verge of another substantial rally, especially as it continues to outperform its meme coin peers.
Can Dogecoin really hit $10?
Despite the optimism, hitting the $10 mark remains highly unlikely according to most analysts. Dogecoin’s all-time high of $0.73, reached in May 2021, coincided with a market cap of $88.80 billion.
To reach $10, Dogecoin’s market cap would need to skyrocket into the trillions, a feat that seems out of reach given current market conditions. With a circulating supply of over 146 billion DOGE, the inflationary nature of the coin further dampens the likelihood of it ever reaching such heights.
For now, $10 remains a dream rather than a probability, driven more by hype than by fundamentals.
Finbold’s verdict
DOGE is currently trading above its 200-day simple moving average, showing bullish momentum.
Out of the last 30 days, Dogecoin has posted gains on 17 of them, indicating strong market support. However, the resistance at $0.13 and $0.15 in the coming week will be pivotal in determining whether the meme coin can sustain its rally.
With Dogecoin’s history of volatility and its heavy reliance on social media hype, we caution against getting swept up in the speculative frenzy.
While some bullish indicators suggest further gains could be on the horizon, the notion of a $10 Dogecoin is still far-fetched, given the coin’s inflationary supply and the market dynamics required to sustain such a price.
