Dogecoin (DOGE) Price Prediction: DOGE Market Cap Surpasses XRP and USDC as Elon Musk's Influence and High Volatility Outpace Bitcoin's Gains

Dogecoin's recent 50% hike in five trading days has gained attention across the crypto market. Experts are attributing such a useful trend to certain benefits for the market.

Dogecoin's recent 50% surge in five trading days has grabbed attention in the crypto market with experts highlighting some interesting aspects that could be beneficial for the market.

Bloomberg's head of crypto coverage, Michael Regan, pointed out that one of the reasons for Dogecoin outperforming Bitcoin in its recent rally could be its low transaction fees.

Due to its lower fees for transactions, Dogecoin has found its use among those who utilize cryptocurrencies for cross-border payments, especially in regions facing economic challenges.

For instance, Regan mentioned how Venezuelans abroad have been using DOGE to send remittances back home at minimal costs.

Apart from individual users, there has also been an increase in companies adopting payment options through Dogecoins.

Some businesses, like Williamsburg Pizza in New York, accept the token, stating that DOGE fulfills all these transactional qualities and more.

Experts noted that this could lead to more entities adopting Dogecoin as a payment platform due to lower transaction fees.

Elon Musk's Influence and the D.O.G.E. Factor

Another factor contributing to this surge is Elon Musk's mentions of Dogecoin, which he has supported for several years.

Recently, Musk proposed an idea for President-elect Donald Trump to establish a "Department of Government Efficiency (D.O.G.E.)" in his administration.

This grabbed the attention of Dogecoin investors, as the agency, aimed at cutting government spending, brought hope to the Dogecoin community.

Many anticipate that with Trump and Musk's support, Dogecoin could gain further attention and possibly be integrated into some businesses.

Past endorsements by Musk have led to positive price movements for Dogecoin, and his recent actions continue to support the token.

Others view his support as crucial for Dogecoin's future success, with many investors believing Musk can bring investors and capital to the token.

Dogecoin's High Volatility Outpaces Bitcoin's Gains

High volatility also worked in Dogecoin's favor, where DOGE grew much faster than BTC in percentage terms.

While other tokens showed bullish trends in the crypto market, DOGE experienced higher price fluctuations compared to Bitcoin.

Regan also noted that this volatility factor is similar to the concept of high-beta stocks, which tend to amplify the overall market returns in a bull market.

The rapid growth saw a 200% increase in DOGE's price from the start of the latest crypto rally at $0.1105 to its peak at $0.4359.

This also increased Dogecoin's market capitalization to $62.96 billion, surpassing assets like XRP and USD Coin.

Experts believe that Dogecoin's highly volatile nature can work to its advantage and disadvantage, offering higher returns in a bull market.

Potential for Dogecoin to Reach Higher Price Channels

Many analysts, like Ali Martinez, anticipate that the Dogecoin price could surge further, with some technicals suggesting a potential price target of $18.

Martinez points out that Dogecoin is currently trading within an up-trending price channel, and each up-move is challenging new resistance levels.

If the token manages to bounce off the middle boundary, it could ascend to levels of $2.40, and if it tests the upper boundary, a price target of $18 is possible, which is significantly higher than the current price levels.

Martinez uses historical price data and Fibonacci retracement levels to indicate an opportunity for a parabolic move up if Dogecoin continues its uptrend.

Such patterns were seen in previous cycles for Dogecoin, where closing above long-term resistances led to gains of 8,933% from 2017 to 2018 and 15,534% from 2020 to 2021.