Dogecoin (DOGE), a popular meme coin about dogs, is indicating a 30% rally for traders.
- DOGE suggests a 30% rally over the next few days
- Dogecoin surpasses Polkadot, with an impressive difference of around $576.235million
- Doge price jumped by 2.25%
It is the 2nd largest proof-of-work network blockchain and 10th most popular.ThDOGE, the biggest crypto by market cap seems to be unstoppable. Dogecoin’s market cap has risen to $576.235million since September 18.
Based on CoinMarketCapThe DOGE market has risen by 2.5% and is currently trading at $0.05813 (as of press time). Many traders have started to purchase DOGE at low prices due to the August decline.
The Bulls Will Overtake the Bears with a 30% Rally
Judging by the 8-hour chart, the Fibonacci Retracement tool shows the August high registered at around $0.092, and it’s recent low spotted at $0.054, demonstrating a retracement by 63.4% at the $0.08 level.
The on-chain metrics suggest that the bears could be hard hit by a 30% price rise if they are correct. The 4-hour chart shows subtle indications that there is a bullish divergence, which could indicate Smart Money entering the market.
DOGE’s sudden spike may be due to the increase in volume seen in the past few days. The meme coin’s trading volume is seen to bolster from 202.16 million hitting 344.5 million. One of the reasons for DOGE’s growth could be attributed to the meme coin exhibiting an uptick in its volume over the past couple of days.
From 202.16 millions to 263.32million at press-time, the volume increased. And it’s not just the trading volume that has shown remarkable growth, the active wallet addresses increased as well. On September 15, the dynamic wallet addresses increased by 113k to 120k.
Dogecoin velocity has also increased which indicates an increase of buying and selling.
DOGE has the potential to draw more miners because of its pump in hashrate which has grown by 4.8% in the last week, demonstrating the strength and security Dogecoin Blockchain.
Dogecoin Drops Social Metrics
On the other hand, DOGE’s social media metrics have plummeted. August wasn’t a good month with DOGE’s social mentions shown to have plunged by 30.02% and social engagements dropped by -39.82%. Doge prices could be affected by the decrease in social media metrics.
Chart: Messari
Another bad news is that the whales’ interest in DOGE seems to have tapered off in August with the number of wallets dropping as much as 13.04% in the past 30 days.
Polkadot’s volatility has been high, and so have social media metrics. These could account for traders shying away.
Meme coins’ extreme volatility is known to make traders cautious. Any new update or announcements made by Elon Musk can cause DOGE prices to change quickly.
DOGE's total market cap is $7.7B according to the daily chart. Source : TradingView.com| Source: TradingView.com Featured image taken from Reuters. Chart by TradingView.com This analysis should not be taken as investment advice.