The price of the meme-inspired cryptocurrency Dogecoin ($DOGE) could surge nearly 550% over the current cryptocurrency market cycle in a rally that a popular cryptocurrency analyst dubbed a “relatively safe trade” as it’s “got too much firepower.”
The popular pseudonymous cryptocurrency analyst, Altcoin Sherpa, noted in a post on the microblogging platform X (formerly known as Twitter) to their over 200,000 followers, that DOGE’s price surge could be partly supported by its “firepower” attributed to it being “king meme” and being supported by Tesla and Space X CEO Elon Musk.
Musk has previously expressed his interest in the token and has hinted at its possible integration into his ventures, such as X, which have historically led to DOGE price rises.
The price of the meme-inspired cryptocurrency surged in November 2022, for example, when Musk noted that the platform would be supporting payments, fueled by speculation the cryptocurrency – which Musk has said “might be my fav cryptocurrency” – could be a part of the payments system integrated into the platform.
However, Sherpa cautioned that the timing of his prediction remains unclear and could take several months, while acknowledging that even if his prediction materializes, the returns are unlikely to match those witnessed during the 2021 bull run due to Dogecoin’s increased market capitalization.
Despite the uncertainty, Sherpa views Dogecoin as a “relatively safe” investment, citing its strong community support and potential for significant growth. He emphasizes that investors should carefully consider their risk tolerance before making any investment decisions.
Sherpa also noted that it isn’t clear whether DOGE will provide investors with a better risk/reward ratio than other cryptocurrencies like Solana ($SOL), although the analyst suggested Dogecoin’s chart “looks great” after it “chopped for 650 days and then exploded up.”
Per his words, next price areas to monitor include the $0.20 mark and the $0.35 mark for the cryptocurrency, which is at the time of writing trading at $0.156 per token after falling more than 4% over the last 24-hour period, and rising by around 100% over the past month.
DOGE has historically seen significant rallies over short periods of time. Back in 2021, search interest for Dogecoin exploded during the cryptocurrency’s massive 10,000% price rally, going from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.
Dogecoin was created back in 2013 as a joke. The cryptocurrency’s community is well-known for taking on philanthropic projects, which included helping charitable organizations. It made headlines in 2014 after raising more than $25,000 worth of DOGE to let the Jamaican bobsleigh team attend the Winter Olympics in Sochi.
Featured image via Unsplash.
