Dogecoin (DOGE) has surged more than 3x since the start of the year, leaving many wondering: “Did the rocket ship take off without me?” While I don’t have a secret crystal ball, after doing some research, I felt compelled to take a small position (and I have). Without further ado, let’s explore three reasons why Dogecoin has exploded over the past month, along with how I’m approaching what I consider the meme coin of the season.
What is Dogecoin?
The Dogecoin phenomenon dates back to its inception in 2013, when it began as just another meme coin. For those unfamiliar with the term, a “meme coin” refers to a cryptocurrency that is typically created as a joke, often without any real utility or practical use case, and is primarily driven by speculation and viral trends. Fast forward to 2021, and fueled by Elon Musk’s frequent tweets, Dogecoin surged in value by nearly 10x, capturing the attention of the global market and turning what was once a lighthearted novelty into a legitimate digital asset.
3 Reasons why Dogecoin is taking off in 2024
Below are the five key reasons I believe Dogecoin’s price has skyrocketed this year, ranked in order of what I have deemed to be the most important, with the first being the most significant factor.
Reason #1 – The Elon Musk Effect
Needless to say, When Elon Musk, CEO of Tesla and SpaceX, began tweeting about Dogecoin in 2021, the cryptocurrency gained immense visibility. This is happening yet again in 2024 with his influence larger than ever. He now has power not only over people but over politics as well hence the game changer this time around is without a doubt him rubbing shoulders with the Trump administration. Furthermore, Musk has repeatedly endorsed Dogecoin, giving it a level of credibility that overshadowed many other altcoins to the point where Doge currently sits at #7 place if we rank Cryptocurrency Prices by Market Cap.
Whether Musk intended to or not, his tweets and public comments on Dogecoin have sent its price skyrocketing on multiple occasions. His playful references to DOGE as “the people’s crypto” and his notorious “to the moon” memes turned Dogecoin from a niche digital asset into a household name.
From this point forward, any positive news or increased attention surrounding Elon Musk—such as a potential SpaceX IPO, favorable White House policies for Tesla, or similar developments—could act as a strong catalyst for Dogecoin’s price, driving it even higher.
Reason #2 – The King of the Moment
Every rally has a “King” meme coin. Trust me I’ve been there for each one of them. Initially, it was SHIB with the idea that $100 could get you millions of SHIB coins hence if SHIB ever rallied to $1 then that would be an easy ticket to retirement. Then there was the Solana dog coin saga with spin-off coins such as WIF and Pepe. Right now, with everything that’s “going on” I believe that Doge is the King of the Moment. No enterprise-grade research to back my thesis up except for a simple Google Keyword Search trend from the past 30 days which I made in less than 30 seconds. Easy I should be a detective.
Reason #3 – Broader Market Conditions + Tokenomics
As with most meme coin rallies, market conditions need to be in a general uptrend for such rallies to see even the slightest of “daylight”. As equity markets reach their all-time highs, there is no better time for a meme coin to step up and be the king.
For meme coins, the timing couldn’t be better. When equity markets are soaring and investors feeling optimistic,”FOMO” increases causing retail investors to explore high-risk assets. In this environment, Dogecoin has benefitted from its association with viral internet culture and its strong community backing. Its accessibility, coupled with attention from high-profile figures, has positioned Dogecoin to potentially capitalize on the general market enthusiasm.
The Dogecoin community itself thrives in a market that’s willing to take on risk, and during bull markets, these rallies can be especially pronounced.
In terms of tokenomics, while demand and supply may seem secondary in the face of overwhelming sentiment, it’s worth noting that, unlike many other meme coins, Dogecoin has a fixed supply cap. While Dogecoin’s supply is technically inflationary (due to its ongoing block rewards), its relative scarcity, combined with potentially ever-increasing demand, could create favorable conditions for price appreciation. This unique dynamic—fixed supply and growing demand—could be exactly what Dogecoin needs to continue its upward trajectory.
What I’m doing right now.
In all honesty, I enjoy jumping on the bandwagon. It’s fun and part of investing is suppose to be fun. Hence at the time of writing last week, I’ve made a small order of $110.
Based on the 4H chart above we can see that the MACD indicates extreme weakness whereas the price action continues to consolidate at about $0.35. This signals a potentially ‘reasonable’ point of entry with clear support and resistance levels. How I’m playing it is as follows.
- Entered at $0.35 where MACD indicated oversold.
- Stop loss at $0.33 where it bounced off this support level twice in the past week.
- Will double my position at $0.45 where the coin sold off twice at this resistance level. Should this resistance level be tested, AND BROKEN, it is likely the fomo will continue.
With all the factors discussed—Dogecoin’s unique community-driven momentum, celebrity endorsements, favorable market conditions, and its evolving tokenomics—it’s clear that Dogecoin’s journey is far from over. The combination of viral sentiment and growing demand could propel DOGE even higher, especially in a market that continues to reward risk-taking and speculative investments.
So, how would you approach trading Dogecoin today? Let me know your thoughts in the comments—I’d love to hear your strategy!
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