Dogecoin Skyrockets 30%, But Indicators Suggest Temporary Spike
The Bottom Line
The cryptocurrency Dogecoin (DOGE) has seen a price increase of over 30% in the last 24 hours, reaching a two-year high. This increase is directly linked to the recent price increase of Bitcoin (BTC), which also reached a three-year high. Despite this positive development, some indicators suggest that the current rise of DOGE may be short-lived.
DOGE at Two-Year High
The cryptocurrency Dogecoin, often referred to as “meme coin”, has experienced a remarkable price increase of 33% in the last 24 hours. According to data from CoinMarketCap, DOGE was trading at a price of $0.12 at the time this article was written. The last time DOGE reached this price was on February 11, 2022. This significant increase underscores the historical correlation between DOGE and the leading cryptocurrency Bitcoin, whose value also rose to a three-year high on February 28.
Possible Price Volatility
Despite the current upswing, there are signs that DOGE’s price increase may be short-lived. The Relative Strength Index (RSI) and the Money Flow Index (MFI) of DOGE were recorded at 88.04 and 87.79 respectively at the time this article was written. These high values suggest a possible exhaustion of buyers, which could lead to a price correction. In addition, the widely spaced bands of the Bollinger Bands (BB) indicator suggest increased volatility and possible price corrections in the short-term range.
Decline in Demand
A look at DOGE’s network activity shows a decline in demand for the meme coin over the past week. The daily number of newly created addresses trading DOGE has dropped by 13% in the last week. At the same time, the number of daily active addresses has fallen by 12% over the same period.
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Our Assessment
Although the current price increase of DOGE is impressive, the data suggests that it may be short-lived. The high RSI and MFI values, as well as the widely spaced bands of the BB indicator, suggest a possible price correction. In addition, the decline in network activity indicates a decreasing demand for DOGE. Therefore, investors should be cautious and closely monitor market developments.
Sources: CoinMarketCap, IntoTheBlock, TradingView, Abiodun Oladokun
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| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Price | $0.38 |
| 24h % | -2.55 % |
| 7d % | -4.76 % |
| 30d % | 169.09 % |
| 60d % | 257.33 % |
| 1y % | 395.93 % |
| Market Cap | $56,224,684,215.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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