Why is Dogecoin Going Up in 2024 & Why Should You Care?

Wondering why is dogecoin going up? Most of us don’t even remember the meme cryptocurrency dogecoin, but it’s back in business. This article explains why.

Remember Elon Musk’s tweets about Dogecoin being the “people's currency”? and his many other support messages for this cryptocurrency? Well, the Shiba Innu mascot currency was not in the headlines for the last few months as it saw fluctuations in its value due to broader market trends and changes in investor sentiment attached to the crypto market.

This currency transcended its meme status and gained real-world acceptance due to its iconic Shiba Innu image and its affiliation with Elon Musk. It was initially mostly used for funding in crowdfunding projects and also gained a lot of popularity as a tipping system on social media, where viewers used it to reward content creators.

So, why is Dogecoin going up?

As of 2024, the dogecoin has again gained traction and has started to make headlines again, thanks to the following reasons:

1. Ripple Effect from Memesector

The positive trend in memecoin has affected the price of dogecoin in the recent past due to the prevailing trends among investors and is doing so in recent months as well. There are several reasons behind the fueling of this trend: more time is spent on social media platforms, where people engage in speculation on stocks, leading to new investors being attracted to the market.

Newer coins that were created and initially appeared to be just meme coins, such as DOGE, have no real value and are now actually on the radar of profitable and serious trading for many traders. Not to mention, the original Shiba Innu, the real image of this coin, has been around in the meme community for years, and its trend is not seen to be going down.

2. IH&S Predictions:

The IH&S, a.k.a. inverse head-and-shoulders, is a reversal pattern that is frequently used in the technical analysis of cryptocurrencies. This technique is used to predict when security reverses from a bearish trend to a “bullish” one. As of the time of writing, the pattern of IH&S in the case of Dogecoin is predicted to be bullish and might increase further in the future, indicating that the trading volume may increase.

3. Recent Short Liquidations:

Another significant reason of why is dogecoin going up is that in the past few weeks, there has been a significant revival of short-term liquidation in the cryptocurrency market, including the Dogecoin currency. If you are not aware of how short liquidations work, here is an explanation: Short liquidations are a result of the appreciation in the prices of such currencies. This forces traders who spend even more to meet the increased price of a digital currency (short sellers) to cover their positions.

Such liquidations can occur when the prices of the cryptocurrencies rise, which leads to these traders’ making losses and calling it a “short squeeze." To cover this, they are forced to purchase the cryptocurrency at a higher price, further enhancing the price rise. This is what is happening with Dogecoin, as the recent buying pressure has significantly pushed the price of Dogecoin.

Short liquidations can also influence the sentiment toward market positivity. Traders of such currencies are now observing a high volume of short-sell orders being closed and could consider it evidence of extensive bottom buy-ins by others. Such evidence can lead to increased buying of dogecoins and more price increases.

4. Return of Keith Gill:

The comeback of Keith Gill, also known as Roaring Kitty, triggered a positive impact on the stocks of GameStop and AMC by 70 percent. This also had a positive impact on the meme coin sector, just as we witnessed similar trading patterns responsible for the gigantic escalation in meme tokens in 2021.

Gill, who is known for his high-end reviews and advocacy for such currencies, impacted his followers with his comeback and also affected the stock market with meme stocks, which translated into the crypto space. Currently, Dogecoin investors are looking forward to printing another result similar to the 2021 bull rally, and a positive trend is highly predictable.

No matter what the trends are for Dogecoin shortly, a reliable start in the cryptocurrency world is extremely essential for those looking to trade or start out a new project. This is where Tokenview can be your reliable starting point. it provides a General Multi-Crypto Blockchain Explorer for more than 120 cryptocurrencies and has industry-leading services as a blockchain development platform.

Wrapping Up:

To conclude the trending question of why is dogecoin going up, we can state that the recent short Liquidations, predictions from IH&S, and the rise of the meme sector are positively impacting Dogecoin and are predicted to increase trading volume.