Article Source: Official Account: Sponge Evolution TheoryDogecoin (DOGE) has experienced an incredible rebound over the past few weeks. The asset is currently the seventh-largest crypto project by market capitalization and is gradually surpassing XRP as the sixth-largest project.
DOGE experienced several years of downturn in 2022 and 2023. The asset's price is unmotivated, and interest is low. Elon Musk's occasional tweet brings some price action, but only for a short time. The bad days of the original memecoin seem to be over, as it may be heading to new heights.
3 reasons why Dogecoin could reach $2
1. Increased whale purchases
According to a Santiment chart shared by cryptocurrency analyst Ali Martinez, DOGE whales bought 0.14 billion tokens in 24 hours on November 15, 2024. These 0.14 billion tokens are worth around 56 million dollars. The increase in whale purchases could mean that big wallets are bullish on DOGE. Whales' movements usually affect the price of an asset. If we follow the whales' trajectory, meme coins could reach a new peak.
2. Elon Musk enters Donald Trump's cabinet:
Musk is one of Dogecoin's most popular supporters. Musk is also the most important supporter of US President-elect Donald Trump. Trump has elected Musk as head of the new Administration's Department of Efficiency (DOGE). Musk had hoped to set up such a department under Trump's leadership. DOGE's price soared after the announcement. This development is likely to have a positive impact on the price of memecoin.
3. The level of overbought has not yet been reached:
Despite the incredible rebound, DOGE has yet to reach overbought levels. This development shows that memecoin still has plenty of room to grow.
According to a chart shared by Ali Martinez last week, DOGE's MVRV is 45.65%. For DOGE, MVRV above 78% means the market is peaking.
