The Dogecoin price soared on Monday after positive comments from Elon Musk and Mark Cuban. The DOGE coin jumped to a $0.3510, which was the highest level since May this year. This rally brought its total market capitalization to more than $42 billion, making it the 7th biggest digital coin in the world. It sits between USD Coin and Solana.
Why DOGE price soared
The Dogecoin price has been in a strong bullish trend in the past few weeks as sentiment in the cryptocurrency industry improves. The coin has spiked by more than 100% from its lowest level in July this year.
This price action is mostly because of the overall performance of the cryptocurrencies industry. Indeed, Bitcoin and other cryptocurrencies like Ethereum and Cardano have all roared back. This is a notable factor because of the close correlation between Bitcoin and other cryptocurrencies.
The weekend rally happened after Elon Musk and Mark Cuban reiterated their support for the coin. Elon Musk, the world’s richest person, has become one of the key advocates for the coin. Therefore, many retail investors have bought the coin because of the influence of Elon Musk.
In another statement, Mark Cuban, the billionaire owner of Dallas Mavericks said that he believed that DOGE was one of the best cryptocurrencies. He said:
“It’s a medium that can be used for the acquisition of goods and services. The community for doge is the strongest when it comes to using it as a medium of exchange.”
So, what next for the Dogecoin price?
Dogecoin price prediction
In my last Dogecoin price prediction, I wrote that the coin will likely keep rising as retail traders return. This has been evidenced by the volume of DOGE that is being traded. Data compiled by CoinMarketCap shows that more than $1 billion worth of Dogecoins was traded on Sunday.
The four-hour chart shows that the coin rose to a high of $0.3500 today and then retreated to the current $0.3315. This retreat was expected considering that $0.3500 was a major resistance level. What is important is that the coin is still being supported by the 25-period and 50-period exponential moving averages.
Therefore, in my view, I suspect that the Dogecoin price will keep rising in the next few weeks as bulls target its all-time high at $0.4877. This price is almost 50% above the current level. Still, this path will not be smooth and the coin will go through several pullbacks.