These are special times for cryptocurrencies. Sentiment around Bitcoin (BTC) and its fellow coins was already positive before the election, buoyed by institutional adoption and the prospect of a post-halving bull market. But that got turbocharged following Trump’s win and the new administration’s decidedly favorable stance toward crypto has sent the space into overdrive.
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Amid this surge, Elon Musk’s favorite memecoin, Dogecoin (DOGE), has joined the rally, skyrocketing by 390% year-to-date. But according to investor James Foord, the rally might still have room to run, even if that seems far-fetched at first glance.
“The appeal to investing in DOGE continues to be based purely on speculation and narrative,” says Foord, “but that doesn’t mean we can’t make rational and measured trading decisions.”
That’s right, Dogecoin, like many other cryptocurrencies, remains a highly speculative play. In fact, you don’t really need to think about it too deeply as the idea of a joke coin boasting a market cap bigger than industry giants such as Ford or Barclays is ridiculous. Still, that doesn’t mean you can’t use the crypto market’s exuberance to your advantage. Which is basically the point Foord is making, noting that DOGE, in particular, has the “right ingredients to stage a strong rally.”
For one, the market could be about to enter Altseason. That is the period when BTC dominance fades, and other coins further down the food chain start going on some unseemly runs. The pattern that usually takes place is that the biggest coins below Bitcoin tend to be the ones that set off this gainful period first. DOGE, being in the top 10, is a likely candidate for another run.
But the real wildcard, as always, is Elon Musk. The self-proclaimed “Dogefather” has a knack for sending DOGE flying with a single tweet or meme. Now, with his new role as co-head of the Department of Government Efficiency (yes, that’s a thing), he’s got even more eyes on him. Musk’s influence on the DOGE narrative hasn’t waned, and rumors are swirling that Dogecoin might be integrated into X’s payment system. Sure, there’s no hard evidence for that — but in the crypto world, rumors are rocket fuel.
Nevertheless, according to Foord, investors could be eyeing the once-unthinkable milestone of DOGE hitting $1 but should tread carefully if it does break through that barrier.
“Based on previous highs, DOGE could break above $1 in the coming year, though holders should have a clear plan in place to take profits or reduce potential losses,” the investor summed up. (To watch Foord’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
