Why Dogecoin (DOGE) Is Up 7% This Week

Dogecoin DOGE/USD is trading higher by 7% to the $0.10-level this week, creating buzz among traders who believe it might signal the beginning of a more sustained bullish trend. However, opinions within the trading community are divided.

This week, our Benzinga team highlighted insights from pseudonymous trader Altcoin Sherpa, who shared his perspective on Dogecoin. While he noted that Dogecoin “looks fine,” he suggested it may not be the ideal choice for active investors seeking quick returns.

Instead, he recommended Dogecoin as a “buy and hold” asset, especially for those interested in a relatively stable investment within the meme coin sector

Meanwhile, data from IntoTheBlock shows a 25.3% increase in large transactions over $100,000, rising from 175 to 211 as of August 19. Despite a 3.8% drop in daily active addresses, 73% of Dogecoin holders remain profitable.

Additionally, the 200-day SMA crossing above the 50-day and 100-day SMAs indicates a strong long-term outlook for the cryptocurrency.

Read Also: Is Bitcoin a Good Investment in August 2024?

What Else: Dogecoin’s price surge this week was also influenced by a Monday night social media post from Elon Musk, a well-known supporter of the cryptocurrency.

Musk shared an AI-generated image of himself with the acronym D.O.G.E., which stood for “Department of Government Efficiency.”

This playful post came shortly after former President Donald Trump suggested he would consider nominating Musk for a government role if re-elected. Musk’s post led to a quick uptick in Dogecoin’s price, further highlighting the impact of Musk’s influence on the meme coin’s market movements.

What's Next: The role of Bitcoin as an institutional asset class will be a key focus at Benzinga's upcoming Future of Digital Assets event on November 19.