Relentless Pursuit for the Unscrupulous: Dogecoin Records Another Significant Weekend Advancement
Dogecoin (DOGE decreasing by 18.07%) has been stirring up a lot of investor interest over the weekend, being one of the most significant movers among the top 10 cryptocurrencies in the market. This dog-themed meme coin soared over 16% from 4 p.m. ET on Friday to its Saturday morning peak, only to give back the majority of these gains on Sunday. It seems that investors are cashing out after the significant surge that saw Dogecoin breach the $0.48 level during the weekend.
It's worth mentioning that at its Saturday peak, which signified a multi-year high for the meme coin, Dogecoin was approximately half the distance from hitting a new all-time high. Given this token's remarkable momentum and the upward trends observed in other prominent crypto projects breaking important psychological barriers and reaching new all-time highs in recent weeks, there are numerous reasons why investors are continuing to bet on Dogecoin surpassing its previous high of around $0.73 per token.
Let's examine the factors driving this trend and predict where Dogecoin might be heading next.
Meme coins going up and down
The cryptocurrency investing landscape is characterized by high volatility for most digital currencies. For Dogecoin, a project that has benefited from some strong politically inspired tailwinds, this rollercoaster has mostly pointed upwards – especially since Donald Trump's reelection as president.
As a figure well-received by the crypto community and advocating for crypto-friendly policies, Donald Trump could potentially drive benefits to the sector in general and specifically to U.S.-based projects due to his position. Additionally, Elon Musk now serving as the de facto "Minister of Efficiency" (DOGE) may further boost Dogecoin through his public commentary on the meme coin.
However, Sunday's selling pressure does seem to give a moment's pause to investors considering the potential for Dogecoin to touch new all-time highs. On Sunday, the broader crypto market dipped due to sector-wide profit-taking as a new week began. Furthermore, negative liquidation data began to emerge, suggesting forced selling could account for at least part of today's Dogecoin rebound from its recent multi-year high.
Where is Dogecoin heading from here?
The weekend's price action may offer clues for what investors can expect moving forward. In my opinion, Saturday's surge, which brought about three-year highs for Dogecoin, symbolizes the skyrocketing momentum that Donald Trump and Elon Musk have provided for meme coins like Dogecoin.
However, Sunday's drop suggests that there may be a significant unwinding of bullish bets on Dogecoin, which is evident in the most recent 24-hour liquidations data for the crypto market. At least $21 million in long derivatives bets on Dogecoin have been liquidated over the past day, compared to around $7 million in bearish bets liquidated during the same time frame. The forced selling observed at fresh multi-year highs may be contributing to some of Dogecoin's retreat.
I believe Dogecoin will remain a key token to monitor in the coming days, and I anticipate the volatility surrounding this project to intensify within the coming weeks. This remains a top crypto project, suitable only for those with a high risk tolerance. However, it's also a fascinating project to watch from the sidelines, and as Elon Musk has highlighted in the past, investing a "little funny money" into it can be an interesting way to see where it goes.
Investors are showing interest in using finance to capitalize on the potential growth of Dogecoin, given its significant surge and close proximity to reaching a new all-time high. Despite Sunday's selling pressure and forced selling at fresh multi-year highs, many continue to invest money in Dogecoin, drawn by its remarkable momentum and Trump's and Musk's influence on the cryptocurrency market.
