Dogecoin (DOGE) Price Surge Raises Questions About Its Potential to Displace Ripple (XRP)

The positive sentiment exhibited by canine-themed memecoin Dogecoin (DOGE) has raised questions in the minds of many. One of these questions is whether DOGE will displace Ripple-associated XRP.

The recent price surge of canine-themed memecoin Dogecoin (CRYPTO: DOGE) has sparked curiosity among many. One burning question that has emerged is whether DOGE is poised to dethrone Ripple- (CRYPTO: XRP) associated XRP.

Here's a closer look at the factors at play and what to expect for Dogecoin in the coming days.

Dogecoin's Stellar Performance in the Market

At the time of writing, Dogecoin was trading at $0.2161, showcasing a 5.6% increase in 24 hours and a weekly surge of 30.11%.

While the broader crypto market is experiencing a rebound, market observers have highlighted the exceptional growth registered by DOGE in this short time.

The coin has faced strong resistance over the last couple of days.

For a brief period, the coin showed strong buying pressure, surging by up to 27% daily. However, analysts suspected that the rally could trigger a short-term reversal.

Moreover, the Bollinger Bands on the daily chart indicated that DOGE has experienced high volatility recently.

The current price action suggests that the tides have changed in favor of Dogecoin.

Several recent events surrounding the coin have hinted at the possibility of a Golden Cross in the short term.

This bullish indicator occurs when the 50-day moving average breaches the 200-day moving average. Such technical setups are rare and usually indicate a bullish move.

According to MikybullCrypto, the volume of whale transactions and a 128% surge in active addresses since August are signs that could lead to the Golden Cross. Dogecoin has witnessed these factors in recent times.

Events Fueling the Surprising Price Surge for DOGE

Currently, a couple of events are fueling the surprising market surge in DOGE price.

In the recently concluded United States election, Republican Presidential Candidate Donald Trump prevailed over his biggest opponent, Vice President Kamala Harris, by a significant percentage.

This news has brought some excitement and rebound to the broader crypto industry. Notably, Elon Musk's open support for Trump has increased the visibility of DOGE.

Historically, any statement or event linking to the billionaire has led to a positive response from DOGE.

His posts tend to trigger a rally for the memecoin, and there are often suspicions that he makes such statements intentionally.

In August, Musk posted a cryptic message on X, mentioning "D.O.G.E." An AI-generated image showed Musk standing behind a podium labeled "Department Of Government Efficiency (D.O.G.E.)."

The cryptic message caused the price of DOGE to roll up by 5% to $0.105 at the time. Despite the unrelated context, many believe the memecoin may have a place in a digital world that Elon Musk is advocating for.

What's Next for Dogecoin?

Going forward, increased user engagement and on-chain activity could trigger a further price surge for DOGE.

Market observers are certain that a potential breakthrough for the coin lurks around.

The upcoming Golden Cross formation is a very bullish signal that could see the Dogecoin price rally in the short term.

Moreover, there is growing optimism among technical analysts regarding DOGE's long-term prospects.

Dogecoin's daily active addresses suggest a clear rise in new users, active wallets, and non-zero-balance addresses. This outlook reflects increased user engagement and on-chain activity, and it aligns with the current DOGE price.

If the projections come as expected, the price of DOGE may breach the $0.3 price level, a point that might topple XRP in ranking.