Dogecoin Rockets 13% in 24 Hours: What’s Behind the Surge?

• Dogecoin skyrocketed 13% earlier today but has since lost its gains as the market cools down, but the meme coin is still up by 11% in the past week.
• Reports emerged that Tesla is now accepting DOGE payments for merchandise, but this seemed to have minimal impact on the token’s price.

Dogecoin shot up earlier today, recording over 13% in gains over a 24-hour period, the highest recovery in the top ten cryptos. However, it has since lost momentum and trades 1.6% lower for the day.

DOGE trades at $0.1586 at press time for a $22.9 billion market cap. Its trading volume has dipped 17% to $16 billion.

In the past week, DOGE has gained 11.10%. It recorded a weekly low at $0.1209 on May 1 before surging to set a weekly high at $0.1688, a 39% increase as the market rebounded, led by meme coins.

Reports have emerged recently that Elon Musk has made good on his promise to enable DOGE payments at Tesla, at least in part. Reportedly, Tesla customers can pay for merchandise with the meme coin. While it would be more impactful if customers could use DOGE to pay for their electric vehicles, it’s a start, and with Tesla being one of the world’s largest companies, it could spark a bandwagon effect.

#Tesla has updated payment methods to include DOGE$DOGE has moved more than 40% in the last 4 days. Was it an anticipatory move?https://t.co/iZVjNRmtJk pic.twitter.com/aGHYb1VtC2

— Kyledoops (@kyledoops) May 4, 2024

While the DOGE community would expect a much bigger move after such a significant announcement, the fact that this only sparks moderate movement speaks to the crypto industry’s maturity. Ultimately, the actual adoption and usage of Dogecoin is what will lead to sustained gains over time.

On this front, Dogecoin has seen an uptick in new addresses, hitting 28,000 on May 2, a 102% surge in a few days, as the industry regains the enthusiasm that seems to have been lost following CZ’s sentencing.

Dogecoin Leads Crypto Recovery

Since May, the crypto industry has been on an uptrend, with some gaining more than others; Bitcoin barely moved, while Ethereum lost 3.4%. However, Dogecoin led other major coins in the recovery. Solana gained 12% in that time, while Toncoin went up 11%.

The meme coins recorded the highest gains. Dogwifhat, the Solana-based meme coin that exploded earlier this year, regained some of its spark, hitting 24% gains in the past seven days to drag its market cap above $3.3 billion. PEPE followed closely behind, hitting 18% to edge its rival with a market cap of $3.53 billion.

Book of MEME gained 18%, while FLOKI gained 10.5%.

Back to DOGE, the meme coin is stuck in a descending wedge pattern, and if it breaks past the upper trend line, it could be poised for significant gains. According to one analyst, such a break out would see the meme coin hit $0.27 in the short term, as illustrated in the graph below.