Why Is Dogecoin Outperforming Bitcoin?

Michael P. Regan, the global team leader for cryptocurrencies at Bloomberg and a former senior markets editor, shed light on this phenomenon during an interview with Bloomberg Crypto. Addressing skepticism from traditional investors regarding Dogecoin’s fundamentals, Regan acknowledged the coin’s unexpected resilience.

“Dogecoin, I think, has surprised everybody with its staying power,” Regan stated. “When you talk about the fundamental values, that gets kind of, you know, sort of a philosophical discussion when it comes to crypto. But one thing about Dogecoin that’s really interesting is it is actually very cheap to transact with, much cheaper than Bitcoin.”

Regan highlighted practical use cases that contribute to Dogecoin’s value proposition. “We’ve had stories—you do actually find people using it for remittances, you know, people sending money back home to Venezuela to their parents. It’s a lot cheaper to do that with Dogecoin than most other cryptocurrencies,” he explained.

Additionally, he mentioned the growing acceptance of Dogecoin in everyday transactions: “There’s even people developing payments apps. You know, there’s a pizza place, Williamsburg Pizza in New York, that accepts Dogecoin.”

Despite its origin as a joke, Regan believes there’s more to Dogecoin than meets the eye. “It started as a joke. You know, it still makes me laugh to think about it, but there is something there that’s a little bit sort of more serious than most people realize, I think,” he concluded.

The Elon Musk Effect

When asked about the influence of Elon Musk on Dogecoin’s recent rally, Regan didn’t mince words. “This rally we’ve seen, I think, is almost, you know, completely tied to Elon Musk,” he asserted. Musk, a well-known advocate for Dogecoin, has a history of impacting its price through his public statements and social media activity.

“Elon Musk has been a huge champion of Dogecoin lately. I think, you know, just for the memes—the guy likes funny memes on the Internet. Dogecoin is sort of the, you know, meme coin of choice on X and Twitter before that,” Regan remarked.

He emphasized the speculative nature of the memecoin and Musk’s significant role within it. “It’s hard to know exactly, you know, if that’s as far as Musk’s appreciation for it goes. But regardless, you know, crypto is all about speculation. He likes it,” Regan said.

Highlighting the impact of Musk’s involvement, Regan concluded, “It’s up almost 200% since the election,â€?referring to the hype which the establishment of the Department of Government Efficiency (DOGE) created.

At press time, DOGE traded at $0.38698.

Why Is Dogecoin Price Going Up Today?

Several crypto analysts have identified Dogecoin as the leading “Trump trade” within the crypto market—a proxy for betting on a Donald Trump victory in the presidential election. This association stems from Elon Musk’s proposal about leading a “Department of Government Efficiency” (D.O.G.E.) under a Trump administration to reduce government spending.

Russian Market (@runews) suggested that if Trump wins, “Elon Musk will land a role at the White House, potentially making Dogecoin one of the ‘official’ cryptocurrencies.” This speculation is considered one reason why Dogecoin is rallying even as Bitcoin faces a decline.

Mammon (@D_DTRADING) also highlighted Dogecoin’s strong performance, arguing that Dogecoin might have become a leveraged bet for a Trump win. “Dogecoin showing great relative strength and imo this has to do with Elon’s involvement in supporting Trump. In which Dogecoin might have become the leveraged bet for a Trump win. Trump win > Doge to the moon??â€?he remarked.

Miles Deutscher emphasized Dogecoin’s role as a catalyst in the crypto market: “DOGE pumps (D.O.G.E initiative will propel DOGE + it’s already showing strength as a proxy). DOGE as the meme leader will also drive attention + liquidity rotation to the broader meme narrative. Think of it as the spark that lights the fire.”

Former investment bank trader Pablo Heman (@RealPabloHeman) observed that “DOGE is the only green in a sea of red cryptos,” implying a correlation between Dogecoin’s performance and the political developments.

He pointed out: “The polls are confusing and contradicting, and actually they are FAKE! But the market does not lie! There is a clear, late surge in DJT the Trump stock, which is now making a Bullish Engulfing Pattern over yesterday’s red bar. […] And also DOGE is the only green in a sea of red cryptos. So just keep in mind Trump = DJT and Elon Musk = DOGE.â€?/p>

Andrea Capellini, founder of Freedom Trading Academy, expressed bullish sentiments on Dogecoin’s potential, suggesting that a Trump and Elon win could send DOGE to $0.47. Capellini’s technical analysis highlights key Fibonacci retracement levels applied from the low at $0.05237 to the recent peak at $0.59546.

Notably, Dogecoin’s price is currently testing the resistance zone just beneath the 23.6% level at $0.21544. Breaking through this resistance could pave the way toward Capellini’s target of $0.47. The Relative Strength Index, a momentum oscillator, stands at 62.72, placing it in the upper neutral zone. This reading indicates growing bullish momentum without yet entering overbought territory (above 70). The current RSI level supports a cautiously optimistic outlook for the continuation of the upward trend.

Moreover, the weekly chart for Dogecoin exhibits a bullish pattern characterized by a series of higher lows and higher highs—a classic sign of a sustained uptrend. However, DOGE is currently facing a downtrend line that has previously acted as resistance. A decisive breakout above this line is crucial to reach higher price targets, including Capellini’s projection of $0.47.

At press time, DOGE traded at $0.16816.