Dogecoin (DOGE) continues its bullish path in the markets by topping the list of the best performing altcoins in the last 24 hours. The Shiba Inu puppy coin does not seem to care that many “serious” analysts say that it has no basis to increase in price.
After a notable price recovery, the meme cryptocurrency presents an increase of 9% on the last day, which positions it in a bullish rally.
The cryptocurrency has experienced a significant recovery after falling to $0.14 yesterday, and today it was trading at $0.16.
According to the market analyst Ali Martinezif DOGE manages to break the resistance barrier of $0.16, could have a rebound of 27%, which would take its value to $0.20as seen in the following graph.
This upside potential appears to be supported not only by price movements but also by its growing network activity.
In recent weeks, the Dogecoin network has shown signs of expansion, adding more than 35,000 new addresses DOGE daily.
The creation of new addresses, which is represented by a blue line in the analysis graph below, indicates growing interest and active participation of new users on the platform.
Since October 21, a significant increase in these new addresses has been noted, a factor that has historically been a precursor to an upward trend in the memecoin price.
On social network X, the analyst known as ZeroHedge_ stood out the recent strengthening of DOGE, considering it a positive sign for its bullish potential in the week.
“Dogecoin has shown strength after the weekend, going off track in the second stage and looking for reasons to continue rising,” the analyst explained.
In addition, he encouraged cryptocurrency followers by expressing his wishes that “the market has a good recovery this week.”
What incentivizes Dogecoin?
DOGE has been rising since last week, which has led analysts like Mike Fay to look for solid fundamentals to explain its growth, as reported by CriptoNoticias.
Fay argues that Dogecoin’s value could be linked to congestion and high transaction costs on the Bitcoin network.
He argues that when Bitcoin fees become prohibitively high, users may opt for cheaper alternatives like Dogecoin, a phenomenon that also drives the growth of active addresses on the latter.
However, Fay acknowledges that, Although Dogecoin shows notable resilience and growth, its intrinsic value remains limited.
It is worth clarifying that bitcoin (BTC) users can use the Lightning Network to have instant and cheap transactions. There is no need to use DOGE or any altcoin.
Dogecoin, a memecoin that should be taken with caution
Its origin as a meme currency may pose a challenge to its long-term adoption. Despite this, the support of its community of followers has maintained Dogecoin’s relevance in the market, a relevance that has allowed it to challenge the volatility of cryptocurrencies.
Furthermore, the speculative component that characterizes memecoins remains a key attraction. These assets, which can multiply in value in a matter of weeks, offer an opportunity for quick profits for those looking to take advantage of market fluctuations.
However, these are also highly speculative assets whose value is driven more than anything by sentiment on social media and online communities. Therefore, They are considered one of the most volatile cryptocurrency market assets.
In short, Dogecoin continues to advance on its bullish path, defying forecasts and maintaining the interest of a community that supports its growth.
The speculative nature of memecoins like DOGE is both a risk and an opportunity, a reminder that in the world of cryptocurrencies, popularity and social sentiment are just as important as fundamental analysis.