TL;DR

DOGEs price surged by over 7% in the past 24 hours and is still in the green despite a minor pullback. One of the reasons behind this rally could be attributed to the establishment of The Official Dogecoin Reserve by an entity related to the OG meme coin. In February, House of Doge signed a five-year partnership with the Dogecoin Foundation to become the latters official commercialization partner. The main focus, according to HoD, is to make the largest meme coin a widely accepted, decentralized currency for everyday transactions.

The two entities have jointly announced the creation of an Official Dogecoin Reserve and have purchased 10 million DOGE to strengthen the new initiative.

Through the launch of the Reserve and an initial 10 million Dogecoin purchase, House of Doge is creating a proof of concept to show that Dogecoin can facilitate seamless and efficient transactions, reads the statement.

Although the amount of DOGE purchased by the Official Dogecoin Reserve is relatively small in terms of USD value, it certainly helps reaffirm the meme coins leadership status within its own niche. It also gives examples to other market participants who can follow suit.

“With a strategic reserve, House of Doge is laying the foundation for a payments ecosystem that ensures liquidity, stability, and reliability. By maintaining a reserve, we can bridge the gap between transaction processing times and real-world usability, making Dogecoin extremely practical for everyday purchases, said Michael Galloro, a Member of the Board-Elect of House of Doge.

Ali Martinez outlined DOGEs price surge and noted that it could lead to another 16% increase if the asset indeed breaks out of its multi-week triangle.

#Dogecoin $DOGE is breaking out of a triangle, which can result in a 16% upswing! pic.twitter.com/25flXRvfcQ

Despite the recent relief rally, DOGEs price has suffered a lot in the past few months. Recall that it peaked at almost $0.5 after the US elections but has dumped by more than 60% since then.