The entire market skyrocketed on April fool’s day. Reason for the pump? Nothing in particular. For Bitcoin (BTC), speculation is that it could either have been bot action, or the action of some big investors anticipating some big news coming up with regards to Bitcoin adoption or regulation. One crypto that has benefited immensely from this pump is Dogecoin (DOGE). Dogecoin shot up by more than 20% on April 1st and doesn’t seem to be easing up.
Dogecoin’s surge could be a combination of the entire market pump and the April fool’s news that BEN (Blockchain Education Network) was rebranding to DEN (Dogecoin Education Network). BEN sent out a tweet announcing this move and the market seems to have received it with lots of excitement. Whether the news is true or not is irrelevant at this point, since it has already given Dogecoin a nice pump and rewarded investors bigly. The big question now is, can Doge sustain it?
Well, the sustainability of this pump will depend on the price action of Bitcoin (BTC). If Bitcoin (BTC) continues with its current momentum, chances are that Dogecoin (DOGE) will continue pumping, just like all other major altcoins. Looking at Bitcoin (BTC)’s price action in the near-term, chances are that it could headed much higher.
Firstly, Bitcoin’s technicals are showing signs of a BTC resurgence. From a look at Bitcoin’s weekly charts, it is clear that Bitcoin is in recovery and possibly bottomed out when it hit $3100 on the weekly 200-day moving average. From that point on, it has been gaining steadily. As it continues to gain, confidence will return to the market, and this will drive up altcoins as well. In essence, if Bitcoin’s momentum is a good indicator of the entire market trajectory, then Dogecoin (DOGE) should see a consistent increase in value in the near-term.
Besides Bitcoin’s price action, there are other factors that support Dogecoin (DOGE)’s value increase in the near term. Its fundamentals are among the best, when compared to other altcoins. For instance, Dogecoin (DOGE) is one of the best cryptos for payments and can compete effectively with existing centralized systems.
In fact, it has a good chance at outcompeting them. That’s because, it has low fees (almost free), it’s fast, and best of all, it is censorship resistant. With Dogecoin, no one can put hurdles in your way when looking to send money. These are attributes that guarantee it continued adoption over time, and ultimately, it will reflect in its value. In essence, as the market continues to gain positive adoption, Dogecoin’s strength as a payment method will play a role in boosting its value.
On top of that, Dogecoin (DOGE) has a strong and active community behind it. It’s one of the most vibrant communities in crypto, and this will play a huge role in driving up the hype in a bull market. Hype in this market is as important as the fundamentals, and can make all the difference in how fast a crypto gains.