Why cryptocurrency dogecoin's price has rallied 145% in just a week

Dogecoin, a long-time favorite of billionaire Elon Musk, has gained more than 145% in the last seven days. The cryptocurrency has exceeded the advances of the world’s two largest digital tokens, Bitcoin and Ethereum, which are up around 7% and 18%, respectively. 

The surge in dogecoin‘s price in the past week has led it to be a top performer among the top ten largest crypto by market capitalization, according to CoinMarketCap.com.

“Dogecoin has been witnessing a bullish momentum in the past few days following the official takeover of Twitter by Elon Musk. The memecoin has been able to break several resistance levels until now post the deal. Elon Musk has always been a huge supporter of the DOGE. Any move in favor of the token has resulted in a coin surge. After the Twitter deal, the DOGE community is optimistic about making payments using DOGE on Twitter in the coming days,” said Edul Patel, CEO and co-founder of Mudrex, a crypto investing platform.

Dogecoin’s rally comes as Musk completed his $44 billion acquisition of Twitter Inc. The Tesla CEO has expressed his support of the meme coin in the past via tweets like “Who let the Doge out” and his embrace of the nickname, The Dogefather.

Dogecoin has declined about 16% in 2022 (YTD or year-to-date) so far, while Bitcoin has plunged close to 55%. Memes and Musk aside, it will take more than a Dogecoin rally to pull digital assets out of the doldrums. Dogecoin is a parody cryptocurrency created by software engineer Billy Markus and Jackson Palmer in 2013.

The global crypto market cap today remained above the $1 trillion mark, even as it was up about a per cent in the last 24 hours at $1.06 trillion, as per CoinGecko.

(With inputs from agencies)

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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