Dogecoin price has been rallying nearly 40% since the start of August. At the time of writing. DOGE was up by more than 5.78% at $0.2792. It ranks as the 7th largest cryptocurrency in the world after XRP. Its current total market capitalization stands at $36.4 billion.
The Dogecoin price is surging as part of the broad cryptocurrency rally after consistent selloffs for nearly a quarter. The crypto market was down by almost 51% from May to late July. Most analysts linked the sell-off to a combination of fear and doubt.
Elon Musk’s rescinding acceptance of Bitcoin as a payment method for Tesla cars saw the Bitcoin price plunge to record lows. However, later in July, Tesla’s CEO, Elon Musk stated that Tesla would start accepting Bitcoin as a payment. This sent BTC’s price pushing most cryptocurrencies higher.
Concerns about the environmental sustainability of crypto mining, as well as stricter regulations by the IRS, also weighed heavily on the crypto outlook. However, the widespread adoption of digital currencies offset the losses pushing crypto prices higher.
During AMC’s earnings call, the company’s CEO, Adam Aron, stated that the company planned to accept Bitcoin as a payment method for tickets starting at the end of 2021. DOGE investors are now hoping that Adam Aron will look their way. Most users on Twitter are urging Adam to consider Dogecoin as a payment method too.
Investors are optimistic that the Dogecoin price will edge higher by the end of 2021 due to the renewed interest in the coin.
DOGE Technical Analysis
The Dogecoin price has been on a bullish trajectory since the start of August. However, it is trading nearly 65% below its highest level in May. It hit an intraday high of $0.28300 before pulling back.
On the daily chart, DOGE is trading above the 50 and 100-day moving averages, reinforcing its bullish outlook.
Therefore, there is a probability that the Dogecoin price will continue rising. The bulls will target the key resistance at $0.4000. However, a move below the support at $0.2300 will invalidate this view.