By Michael Scott
The crypto lead at Bloomberg, Michael Regan, examines factors behind Dogecoin outperforming Bitcoin in a recent bull run. Will the factors play out to fuel further DOGE rally?
Dogecoin’s impressive surge is turning heads in the recent crypto bull run for its incredible rally. DOGE uptick surpasses other top-ranked assets including Bitcoin, Solana, Binance Coin (BNB), and Ethereum.
Bloomberg spotlights Dogecoin’s recent surge with the memecoin’s price up by 50% in the five-day run. The upward trajectory emerged from investors’ optimism for digital assets under President-elect Donald Trump honoring a promise to support the crypto industry.
What Is Driving the DOGE Rally?
Dogecoin’s recent rally posed a surprise outcome per Bloomberg crypto lead Michael Regan. The executive downplays the meme coin origin, indicating DOGE now presents a serious reputation as several factors fuel its asset’s value.
Dogecoin Payment Utility
Regan acknowledges that Dogecoin offers lower transaction fees to the users than other cryptos offer. The Bloomberg executive considers the lower fees in DOGE to make it the preferred payment approach for international payments.
Regan illustrates how the Venezuelans can leverage cheaper fees to remit funds outside the country. The Bloomberg exec mentions that various developers are behind multiple payment apps accepting DOGE, citing New York’s Williamsburg Pizza as an illustration.
Elon Musk Ties with Trump’s Administration
Regan attributes the Dogecoin rally to test uncharted territories in three years to the Musk influence. The Tesla chief executive and X (formerly Twitter) owner portrays affinity for internet-based memes aligns with the DOGE nature.
Musk advocates for the Trump-led administration to establish the Department of Government Efficiency (DOGE). The new agency is poised to minimize tax expenses through streamlined operations for the GOP-led government. Most Dogecoin investors perceive the Musk links with the Trump administration will boost the memecoin value, thus the price spike following the victory over Kamala Harris.
High Volatility
Dogecoin’s recent run registered more gains, unlike Bitcoin despite the latter printing a new peak at $89,863.64 on November 12 per CoinGecko data.
. Higher gains registered than Bitcoin Explaining why Dogecoin has registered more gains in the past few days than Bitcoin, Regan used the analogy of how certain stocks surge more whenever the S&P 500 sees a slight increase.
Regan suggests that DOGE often experiences greater volatility than BTC. Its nature is seen in rallying more whenever the premier asset price uptrends and equally slumps harder on the drop. As such, the crypto executive attributes Dogecoin outperforming other digital assets due to the payment utility, volatility, and Musk’s.
Dogecoin Recent Performance
Dogecoin leap dwarfs the surge realized by other crypto assets despite not registering a new peak like Bitcoin in the bull run. Nonetheless, DOGE has witnessed significant gains exceeding 240% in the 30-day run.
A look into the charts shows DOGE soared from $0.1105 to a three-year high at $0.4359 lifting its market value to $62.96B from $16.4B. The spike elevated Dogecoin to flip XRP and USD Coin (USDC) to become the sixth-largest crypto by market value.
As cited by Regan on Dogecoin volatility, the memecoin has lost gains amid the market-wide pullback from rising selling pressure. DOGE changes hand at $0.3867, down 3.6% in the past 24 hours.
DOGE Room for More Growth
While the Dogecoin run brought a three-year peak, market analyst Ali Martinez notes the MVRV indicator suggests further upside. The analyst outlook emerges despite DOGE suffering a modest pullback to $0.3867 though still up by 94% over the past seven-day run.
Martinez dismisses the pullback as a short-term dip in the belief that the meme-inspired asset’s rally is yet to exhaust the course. A recent illustration of the Market Value to Realized Value (MVRV) captures the bullish outlook since it is yet to cross 78% to realize its peak.
Martinez observes the recent price correction led the MVRV ratio to reset to 45.65%. Per the analyst insights, the MVRV shows substantial room for Dogecoin to leap further before hitting the overvalued territory.
The crypto analyst reveals that past rallies emerge whenever the DOGE surpasses the critical 78% threshold. With its current reading reset to 45.65%, Martinez considers such significantly below to suggest DOGE’s bullish momentum is sustainable.
A previous analysis by Martinez on the long-term price trajectory captures a ten-year ascending channel for DOGE. The analyst hints that Dogecoin could test the middle and upper boundaries corresponding to $2.40 and $18.
The daily chart shows Dogecoin has blasted above the lower boundary to signal the start of the extended rally. Although the $18 is an ambitious call, the middle boundary target at $2.40 is more attainable per the prevailing momentum.
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