Elon Musk signing the Twitter deal Dogecoin (DOGE) triggered a rally in price. The price, which has increased by an average of 16% in the last 24 hours, is now at $ 0.07782. Will this rally continue?
Elon Musk’s acquisition of Twitter was the most talked about news of the day. The combination of these two names creates a serious momentum in the price of Dogecoin. A similar trend has been continuing since 2021.
However, there is an important question in the minds of investors. Can Dogecoin bulls continue the rally?
meme coin Although it is down 89.72% from its highest level, it still receives community support. Recent gains from Musk have reversed the DOGE price losses recorded over the past five months.
Dogecoin social metrics show a four-month high of weighted sentiment in the meme coin. Social volumes showed a healthy increase alongside DOGE price charting a vertical recovery.
Increasing monthly MVRV, DOGE is showing a good long-term reversal from the low $0.065 range. However, with daily and weekly MVRV rates falling after rising, the same has cast some doubts about the recent rise in price.
As a result DOGE price It broke above $0.075 for the first time in ten weeks. DOGE whale transactions and trading volume rose to August levels.
The number of larger transactions and larger transaction volumes also recorded a significant increase, indicating that larger DOGE players are moving in the market.
Will Dogecoin (DOGE) Price Craze Continue?
Koinfinans.com As we have reported earlier, DOGE price, especially Elon Musk When the news about it spread, it generally responded extremely well to social enthusiasm. However, a look at DOGE’s historical price action revealed that gains based on social sentiment were hardly sustained.
In May 2021, the DOGE price jumped almost 50% after Elon Musk described Dogecoin as “as real as the dollar.” The gains were short-lived, however, and after a while, it quickly retreated.
Indeed, a worrying factor is the fact that daily active addresses have not been able to show a large increase even though the price is posting double-digit gains. In addition, the percentage of the total stablecoin supply held by whales with over $5M also remained at its lowest levels.
Dogecoin price is holding the $0.068 level as support, according to data from IntoTheBlock’s indicator. Dogecoin price is likely to face stiff resistance at $0.087. For now, DOGE price action has enough retail volumes to support the uptrend with 24-hour trading volumes up 150%.
If the upside is invalidated, a pullback to the lower $0.068 zone is possible.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.