Dogecoin value rallies 150% in 4 days, however DOGE now most 'overbought' since April 2021


The Dogecoin (DOGE) value rally prolonged additional on Oct. 29 in hopes that the cryptocurrency would get a significant enhance from Elon Musk’s Twitter acquisition.

Elon Musk boosts Dogecoin value once more

Dogecoin value jumped by almost 75% to achieve $0.146 on Oct. 29, the most important every day acquire since April 2021.

DOGE/USD every day value chart. Supply: TradingView

Notably, the meme-coin’s large intraday rally got here as part of a broader uptrend that began earlier this week on Oct. 25. In whole, DOGE’s value gained 150% through the Oct. 25-29 value rally.

The surge was additionally accompanied by an honest enhance in its every day buying and selling volumes. That coincided with a spike within the variety of DOGE transactions exceeding $100,000, in line with Santiment. Each indicators sugges a rising demand for Dogecoin tokens amongst wealthy buyers, or so-called “whales.”

Dogecoin whale transaction rely. Supply: Santiment

The leap throughout Dogecoin’s key metrics mirror buyers’ pleasure about Elon Musk’s Twitter acquisition on Oct. 27. Earlier this yr, the billionaire entrepreneur had flirted with the concept of creating Dogecoin a fee technique to buy the Twitter Blue subscription.

Musk’s Tesla and SpaceX already settle for DOGE funds for his or her merchandise.

$DOGE, the official forex of Twitter.

— David Gokhshtein (@davidgokhshtein) October 28, 2022

Shiba Inu, meme-coins comply with DOGE

Shiba Inu (SHIB), the second-largest meme token by market capitalization, posted a copy-cat rally as nicely. 

On Oct. 29 alone, SHIB’s value jumped by 30% to $0.00001519, its highest stage since August 2022. Like Dogecoin, Shiba Inu’s rally got here as part of a broader uptrend that began on Oct. 25. Since then, its value has gained 53%.

SHIB/USD every day value chart. Supply: TradingView

Moreover, different meme cash have jumped massively within the mentioned interval, together with Dogelon Mars (ELON), which rallied 140%. 

Meme cash efficiency on hourly, every day, and weekly timeframes. Supply: CoinMarketCap

Dogecoin most overbought since April 2021

Dogecoin’s ongoing value rally is beginning to look overstretched, nonetheless, in line with a basic technical indicator.

The relative energy index (RSI), a momentum indicator figuring out the diploma of current value adjustments to research overbought or oversold ranges, has risen to 93.69 on the every day Dogecoin chart. That is the very best stage since April 2021, a month earlier than the DOGE value rallied to its report excessive of $0.75. 

DOGE/USD every day value chart. Supply: TradingView

Subsequently, the “overbought” circumstances don’t essentially imply a direct bearish reversal. However they do mirror the present euphoric shopping for momentum available in the market, which ultimately prompts the value to pattern both sideways or right downward.

Dogecoin’s 2018-2020 bear market on a weekly chart sheds mild on comparable value motion. Notably, DOGE crashed by virtually 95% virtually two years after peaking at $0.0194 in January 2018.

Associated: Bitcoin value broke out this week, however has the pattern modified?

The token’s correction interval noticed it trending inside a descending channel. It broke out of the vary to the upside in July 2020 however adopted the upside transfer with a sideways consolidation pattern — between its 0 Fib line of 0.0022 and 0.236 Fib line of $0.0054 — till December 2020.

DOGE/USD weekly value chart. Supply: TradingView

As compared, Dogecoin’s ongoing bear market is shorter however exhibits an identical pattern trajectory to the 2018-2020 interval, as proven above. Subsequently, DOGE could fluctuate inside its present 0-0.236 Fib line vary (or the $0.055-$0.176 vary) following its descending channel breakout.

In different phrases, DOGE might right towards $0.055 by the top of this yr, down about 60% from present value ranges, if the fractal performs out as supposed. 

Conversely, a direct breakout above the 0.236 Fib line might have DOGE eye $0.25 as its subsequent upside goal.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Each funding and buying and selling transfer entails threat, you need to conduct your individual analysis when making a call.


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