What’s supporting the Dogecoin price in September?

The Dogecoin (CRYPTO: DOGE) price is up just under 1% over the past 24 hours, currently trading for 6.35 US cents.

That also puts the dog-themed crypto, with a Shiba Inu for its virtual mascot, up roughly 1% since the clock struck midnight on 31 August, according to data from CoinMarketCap.

While it’s still early in September, that’s certainly better than the 12% decline in the Dogecoin price last month.

What’s supporting the Dogecoin price?

Most cryptos have had a stronger run so far this month than they enjoyed in August.

Part of that is the current reset in investor expectations over the size and pace of interest rate rises from the US Federal Reserve and, to a lesser extent, other global central banks. A reset that could send the Dogecoin price higher.

While uncertainty remains the name of the game, markets are beginning to price in the potential of a more dovish Fed moving forward. There’ll still be some rate rises to bring inflation back under control, to be sure. But perhaps fewer and smaller hikes than investors had been pricing in last month.

This optimism has seen risk assets rally over the past week, with the tech-heavy NASDAQ up 3.8% over the past five trading days.

Is Ethereum helping lift the meme token?

The Dogecoin price could also be receiving some broader support from the upcoming Merge on the Ethereum (CRYPTO: ETH) network. That process is scheduled to go fully live this week.

According to eToro’s market analyst and crypto expert Simon Peters:

Crypto asset markets have staged a rally in the past week as we enter the final 72 hours ahead of the Merge of the Ethereum network. The event is focusing all minds in the sector as investors and users wait to see its impact on the market.

If you’re unfamiliar with the Merge, it represents the long-awaited transition in the Ethereum blockchain away from proof of work (PoW) to proof of stake (PoS). If all goes as planned, this will see a massive reduction in energy used required to secure the blockchain and verify transactions, with far fewer computers involved.

Like Bitcoin (CRYPTO: BTC), however, Dogecoin will continue to operate a PoW protocol for the foreseeable future.

How that may impact the Dogecoin price longer term, remains unclear.

The post What’s supporting the Dogecoin price in September? appeared first on The Motley Fool Australia.

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More reading

• Why Bitcoin and Solana jumped on Monday
• Can the Bitcoin price reach US$1 million?
• Will the Ethereum price continue to outperform in 2022 post Merge? Expert panel weighs in
• Why the Bitcoin price is not having a ‘whale of a time’ lately
• Why Bitcoin, Ethereum, and Solana were up Thursday morning

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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