The Dogecoin (DOGE) worth rally prolonged additional on Oct. 29 in hopes that the cryptocurrency would get a significant increase from Elon Musk’s Twitter acquisition.
Elon Musk boosts Dogecoin worth once more
Dogecoin worth jumped by almost 75% to succeed in $0.146 on Oct. 29, the most important day by day acquire since April 2021.
Notably, the meme-coin’s huge intraday rally got here as part of a broader uptrend that began earlier this week on Oct. 25. In whole, DOGE’s worth gained 150% in the course of the Oct. 25-29 worth rally.
The surge was additionally accompanied by an honest enhance in its day by day buying and selling volumes. That coincided with a spike within the variety of DOGE transactions exceeding $100,000, based on Santiment. Each indicators sugges a rising demand for Dogecoin tokens amongst wealthy buyers, or so-called “whales.”
The bounce throughout Dogecoin’s key metrics mirror buyers’ pleasure about Elon Musk’s Twitter acquisition on Oct. 27. Earlier this 12 months, the billionaire entrepreneur had flirted with the concept of constructing Dogecoin a payment method 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 effectively.
On Oct. 29 alone, SHIB’s worth jumped by 30% to $0.00001519, its highest degree 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 worth has gained 53%.
Moreover, different meme cash have jumped massively within the stated interval, together with Dogelon Mars (ELON), which rallied 140%.
Dogecoin most overbought since April 2021
Dogecoin’s ongoing worth rally is beginning to look overstretched, nonetheless, based on a traditional technical indicator.
The relative energy index (RSI), a momentum indicator figuring out the diploma of current worth adjustments to investigate overbought or oversold ranges, has risen to 93.69 on the day by day Dogecoin chart. That is the very best degree since April 2021, a month earlier than the DOGE worth rallied to its document excessive of $0.75.
Due to this fact, 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 worth to pattern both sideways or right downward.
Dogecoin’s 2018-2020 bear market on a weekly chart sheds gentle on comparable worth motion. Notably, DOGE crashed by nearly 95% nearly two years after peaking at $0.0194 in January 2018.
Associated: Bitcoin price broke out this week, but has the trend changed?
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.
As compared, Dogecoin’s ongoing bear market is shorter however reveals an identical pattern trajectory to the 2018-2020 interval, as proven above. Due to this fact, 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 12 months, down about 60% from present worth 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 writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it is best to conduct your personal analysis when making a choice.
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