In a recent video update, popular crypto market commentary show “Altcoin Daily” told the channel’s over 1.31 million subscribers that the price of highly popular meme-based cryptocurrency Dogecoin (DOGE) is about to “explode”, and here were the reasons they gave:
- Surge in Transactions: One of the key indicators of Dogecoin’s potential for growth is the significant increase in its daily transaction volume. The video highlights that Dogecoin has consistently confirmed over a million daily transactions, surpassing Bitcoin and Ethereum. On May 27th, 2023, Dogecoin reached a milestone of processing over 2 million transactions in a single day. This surge in transactions indicates a growing use of Dogecoin for transfers, which could potentially drive up its price.
- Introduction of DRC20 Tokens: The video attributes the surge in Dogecoin transactions to the introduction of DRC20 tokens, which are similar to BRC20 tokens minted on Bitcoin’s blockchain. This development has expanded the functionality of the Dogecoin network, allowing for the creation of custom tokens. This could attract more users and developers to the platform, increasing demand for Dogecoin and potentially driving up its price.
- Increase in Hash Rate: Another positive indicator for Dogecoin is the notable uptick in its hash rate over the past few weeks. The hash rate measures the computational power being used to secure the network. An increase in the hash rate indicates a healthy and strong network, suggesting that more miners are supporting Dogecoin. This increased network security could make Dogecoin more attractive to investors, potentially driving its price.
- Bollinger Bands Indicator: The video also points to a technical analysis indicator called Bollinger Bands bandwidth, which suggests that Dogecoin’s price could make a pronounced move in either direction. Given the other positive indicators, the video indicates that an upward move is more likely. If this prediction holds true, it could result in a significant increase in Dogecoin’s price.
- Historical Market Trends: The video mentions that historically, a pump in Dogecoin’s price usually precedes a bull market in the broader crypto cycle. If this pattern holds true, a rise in Dogecoin’s price could signal a broader market rally, potentially leading to further increases in Dogecoin’s price.
As always, it is worth keeping in mind that investing in cryptocurrencies involves a huge amount of risk, and it’s essential to do your own research and analysis and consider your risk tolerance before making any investment decisions.
Featured Image Credit: Photo / illustration by “Kanchanara” via Unsplash
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