Now that Elon Musk the ‘Dogefather’ is the new owner of Twitter, the news has naturally excited supporters of the crypto enough so that the price of the meme coin has gone into a frenzy. Now DOGE/USD is hitting its highest price levels since as far back as April.
On October 29, the price of Dogecoin went up by nearly 75% to $0.146, which recorded its largest daily gain since April 2021. The rally was a part of a wider uptrend that had begun earlier last week on October 25. Overall, the price of DOGE gained 150% during the rally witnessed between October 25 and 29.
What followed right on the heels of the steep price hike was an increase in DOGE’s daily trading volumes. And that wasn’t the end of it; all these events were accompanied by a spike in the number of transactions using Dogecoin. The number reportedly went past $100,000. Relevantly, there is also a surging demand for the meme coin among crypto whales.
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Needless to say, all these highs witnessed in Dogecoin’s key metrics can majorly be attributed to Elon Musk’s much-awaited acquisition of the social media platform Twitter. As he had hinted earlier in the year, there’s a possibility that Dogecoin may be integrated with some core functionalities of Twitter going forward. In fact, there’s a notion that DOGE might be incorporated on Twitter as a payment method to acquire the Twitter Blue subscription.
Notably, organizations under Musk like Tesla and SpaceX are already accepting DOGE as a form of payment.
On a more analytical note, the RSI momentum indicator is pointing towards the ongoing rally of Dogecoin becoming a bit overstretched at this point. The RSI for DOGE/USD currently stands at 88, nearing overbought levels. While this level does not signify any immediate bearish trend reversals, it does show the current happenings in the broader crypto market. The widespread ‘buy’ sentiment may bring about a downward or sideways price move sooner or later.
Notably, Dogecoin's bear market witnessed between 2018 and 2020 shows a pretty similar price action. The coin went down by almost 95% within two years after touching the highs of $0.0194 in January 2018. According to current analytics, DOGE might witness a correction and move toward $0.055 by the end of 2022, going down by about 60% from the range it’s trading around as of the end of October. However, if the rally perseveres, DOGE may look at $0.25 as its next firm resistance.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.