Despite losing a lot of value in 2018, Dogecoin still has supporters that trade it. Most people use it to post content on Twitter or Reddit. Dogecoin was inspired by the dog meme. Elon Musk supports memecoins and thereby affects their prices.
Doge saw a huge price rise after the official acquisition of Twitter. In the seven past days, cryptocurrency prices have risen above the 200-day average.
This is DOGE’s big comeback after it traded below $0.06 last week. The price of DOGE soared to an all time high above $0.15 Tuesday. According to TradingView, the ratio of DOGE’s market price and the 200-day simple moving average (SMA) hit 1.83. This is the highest recorded value since June 2021.
Stockton, Dogecoin Rally Might Turn Out To Be A Selling News Event
Doge’s Mayer Multiple, also known as the ratio of market price to 200-day SMA for DOGE, ranks highest among top 20 cryptocurrency market caps. Katie Stockton is the founder and managing partner for Fairlead Strategies.
Due to speculations regarding Twitter integration, Dogecoin surged above 100% last Wednesday. Stockton acknowledged the significance of the spike above the 200-day moving mean and noted it on the chart.
Following Stockton’s analysis, DOGE’s break in price may have long-term effects if the bulls build a new base above the previous resistance level of $0.0917. Relying on this rally is risky as it could lead to the news being sold and the rumor bought.
Stockton claims that traders who purchased DOGE before the Twitter acquisition could book profits, which may lead to a decline in DOGE’s price. Stockton’s prediction is already playing out, as DOGE price dropped by 8.5% to $0.0129 on Wednesday morning. DOGE currently stands at 17% below its Tuesday Peak level.
However, the MACD histogram suggests a strong upward trend. The stochastic oscillator however has fallen lower than the overbought levels above 80. It indicates that there has been a short-term price drop. The MACD is used by crypto chart analysts to determine trend strength and trends, and stochastic allows them to detect overbought or oversold levels.
Outlook on the DOGE price
DOGE currently trades at $0.13305 and has a 24 hour trading volume of $4263,850 591 The price has increased by 4% over the 24 hours.
Shiba Inu also increased by 3% over the 24 hour period and trades at $0.000012. The 24-hour trading volume for the meme coin is $574,406,282. There is a 549,063,278,876,302 SHIB coin supply for the meme coin.
Dogecoin’s recent market event is proof that it is not a joke. DOGE saw a more than 3200% increase in its annual growth in 2017, placing it among the top cryptocurrencies.
Featured image taken from Pixabay. Chart from TradingView.com