Over the past few weeks, Doge (DOGE) has experienced an incredible rebound. The asset is currently the seventh largest cryptocurrency project by market capitalization and is gradually surpassing XRP to become the sixth largest project.
DOGE has experienced a few years of sluggishness in 2022 and 2023. The asset's price has not gained momentum, and interest has also been low. Elon Musk's occasional tweets have brought some price action, but only briefly. The bad days of the original memecoin seem to be over, as it may be heading towards new highs.
3 Reasons Why Doge Could Reach $2
1. Increased Whale Buying
According to a Santiment chart shared by crypto analyst Ali Martinez, DOGE whales bought 140 million tokens in a 24-hour period on November 15, 2024. These 140 million tokens are worth around $56 million. The increase in whale buying may indicate that large wallets are bullish on DOGE. Whale movements often influence the price of an asset. If we follow the whales' trajectory, the meme coin could reach new highs.
2. Elon Musk Joins Donald Trump's Cabinet:
Musk is one of Doge's most popular supporters. Musk is also one of the most important supporters of U.S. President-elect Donald Trump. Trump has elected Musk to lead the new Department of Efficiency (DOGE) in his administration. Musk had hoped to establish such a department under Trump's leadership. After the announcement, the price of DOGE soared. This development could have a positive impact on the price of the memecoin.
3. Not Yet Overbought:
Despite the incredible rebound, DOGE has not yet reached overbought levels. This development indicates that the memecoin still has significant room for growth.
According to the chart shared by Ali Martinez last week, DOGE's MVRV is 45.65%. For DOGE, an MVRV above 78% means the market has reached its peak.
