Although Dogecoin lost much of its value in 2018, it still has supporters who trade it. The majority are using it for content on Twitter and Reddit. Dogecoin is based on the dog meme. Elon Musk continually supports the memecoin, thereby affecting its prices always.
The complete official acquisition of Twitter inspired a massive price rally for DOGE. Over the past seven days, the cryptocurrency has pushed above a 200-day moving average.
It is a huge comeback for DOGE after trading below $0.06 a week ago. Its price jumped to an all-time high above $0.15 on Tuesday. According to TradingView, the ratio of DOGE’s market price and the 200-day simple moving average (SMA) hit 1.83. That is the highest value since June 2021.
Dogecoin Rally Might Be A Sell News Event: Stockton
The Mayer Multiple (also the ratio between market price and 200-day SMA) for DOGE ranks the highest by market cap among the top 20 cryptocurrencies. Founder and managing partner at Fairlead Strategies, Katie Stockton, commented on this.
She confirmed that Dogecoin rallied above 100% last week due to speculations for Twitter integration. Stockton noted the surge above the 200-day moving average, acknowledging it as meaningful on its 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. But relying on the rally may be risky since there is a possibility of buying the rumor and selling the news event playing out.
According to Stockton, traders who bought DOGE ahead of the Twitter acquisition event may book profit, causing a price decline. Stockton’s prediction is already playing out, as DOGE price dropped by 8.5% to $0.0129 on Wednesday morning. DOGE is currently 17% down from its Tuesday Peak level.
The MACD histogram indicates a strong upward momentum, but the stochastic oscillator has dropped lower from the overbought levels (above 80). That signifies a temporary price decline. Crypto chart analysts use the MACD to measure the trend strengths and changes, while stochastic enables them to identify overbought and oversold levels.
DOGE Price Outlook
Presently, DOGE is trading at $0.13305 with a 24-hour trading volume of $4,263,850,591. It is up by 4% in the last 24 hours.
Shiba Inu is also up by 3% in the last 24 hours and is trading at $0.000012. Its 24-hours trading volume is currently $574,406,282. The meme coin has a circulating supply of 549,063,278,876,302 SHIB coins.
With the recent event in the market, Dogecoin is no joke. DOGE has recorded a yearly growth of over 3200% in the last year, placing it in the same category as some leading cryptocurrencies.
Featured image from Pixabay and chart from TradingView.com