Dogecoin back on top in the meme coin race

Dogecoin, the king of meme coins, is back capture the spotlight as it reclaims its throne among meme coins. According to price data from Coinmarketcap, Dogecoin is currently outperforming other meme coins in gains on both 24-hour and seven-day periods.

What’s even more impressive is that Dogecoin isn’t just outperforming its meme coin competitors. It also outperforms all other major cryptocurrencies in the top 20 rankings by market capitalization.

From the looks of it, Dogecoin It looks like a recovery to $0.2but what could be driving this rally?

What’s behind DOGE’s double-digit price rally?

At the time of writing, Dogecoin price is recording double-digit gains across all major time periods, with a notable 30% increase in the last seven days. A broader look at the cryptocurrency landscape shows that this price increase is not just affecting Dogecoin. Many other digital assets are also riding the wave of notable gains, fueled by Bitcoin’s ongoing rally and subsequent break above $68,000 for the first time since June.

However, Dogecoin, which has largely lagged behind Bitcoin’s gains since the beginning of the year, has now broken away and is currently outperforming Bitcoin. To put this into context, Dogecoin is up almost 10% in the last 24 hours, compared to Bitcoin’s current 0.52% in the same 24 hours.

Dogecoin’s rally this week, along with other cryptocurrencies, began on Tuesday, October 15th. However, on Thursday, October 17th, the Dogecoin rally began in full swing. This was triggered by an unexpected movement from Elon Musk’s Tesla. which transferred over $750 million of Bitcoin into new, undisclosed wallets.

Although the transaction was not directly related to Dogecoin, it sparked speculation among investors that Tesla could shift its assets to the meme coin, leading to a surge in demand for DOGE.

Adding to the excitement, Musk briefly mentioned Dogecoin during a town hall meeting in Folsom, Pennsylvania that same day. When asked if he would lead a new “Ministry of Government Efficiency” in reference to his posts on social media platform X, Musk simply smiled and replied, “Yes, Doge.”

This was enough to be the most awaited signal for Dogecoin enthusiasts as many of them started rushing into the meme coin again. This combination of speculation has led to a flood of new investments in Dogecoin and created a fear of missing out (FOMO) among investors.

What’s next for the Dogecoin price?

At the time of writing, Dogecoin is trading at $0.145, its highest level since June 13th. From the looks of it, it is the meme coin has broken through the resistance at $0.14 and is on track for strong momentum for further gains. In case of one sustained rally and FOMO, Dogecoin price will steadily approach $0.2 for the rest of October.

However, there is still a chance that DOGE will pull back to retest resistance at $0.14 before resuming the uptrend.

Featured image from Getty Images, chart from TradingView