On October 29th, the price rise of Dogecoin further expanded, indicating that investors hope the cryptocurrency can receive a significant boost from ElonMusk's Twitter acquisition. On October 29th, the price of Dogecoin jumped nearly 75% to $0
On October 29th, the price rise of Dogecoin further expanded, indicating that investors hope the cryptocurrency can receive a significant boost from ElonMusk's Twitter acquisition. On October 29th, the price of Dogecoin jumped nearly 75% to $0.146, the largest daily increase since April 2021.
It is worth noting that the large-scale intraday rebound of virtual currencies, which initially appeared for the purpose of humor, is part of a broader upward trend that began earlier this week on October 25th. During the price rebound from October 25th to 29th, the price of DOGE increased by a total of 150%.
The upward trend is also accompanied by an increase in its daily trading volume. According to Santiment's data, this is in line with the surge in the number of DOE transactions exceeding $100000. These two indicators indicate that wealthy investors, known as the "giant whales," are increasingly in demand for Dogecoin tokens.
The jump in key indicators across Dogecoin reflects investors' excitement about Elon Musk's acquisition of Twitter on October 27th. Earlier this year, the billionaire entrepreneur joked about making Dogecoin the payment method for purchasing the TwitterBlue package.
Musk's Tesla and SpaceX have accepted payment from DOGE to purchase their products.
On October 29th alone, the price of SHIB jumped by 30% to reach $0.00001519, the highest level since August 2022. Like dog coins, the rise of another funny coin, ShibaInu, is also part of a broader upward trend that began on October 25th. Since then, its price has increased by 53%.
SHIB/USD daily price chart source. TradingView
In addition, the prices of other similar related currencies also saw a significant jump during the aforementioned period, including DogelonMars (ELON), which rebounded by 140%.
The performance of commemorative coin in hourly, daily and weekly periods. Source. CoinMarketCap
Dogecoin has shown technological overbought since April 2021
However, according to a classic technical indicator, Dogecoin's ongoing price rebound is beginning to reach its final stage.
The Relative strength index (RSI) is a momentum indicator that determines the extent of recent price changes to analyze the level of overbought or oversold. It has risen to 93.69 on the Dogecoin daily chart. This is the highest level since April 2021, a month before the DOGE price rebounded to a historic high of $0.75.
DOGE/USD daily price chart
Of course, the 'overbought' condition does not necessarily mean an immediate bearish reversal. But they do reflect the current thriving purchasing momentum in the market, which will sooner or later lead to a horizontal or downward correction trend in prices.
Dogecoin's weekly chart of the 2018-2020 bear market reveals similar price changes. It is worth noting that after reaching a peak of $0.0194 in January 2018, DOGE collapsed by 95% within almost two years. It broke through the range and went up in July 2020, but after that, there was a trend of sideways consolidation - between its Fibo line of 0.0022 and Fibo line of 0.236 at $0.0054- until December 2020.
DOGE/USD Weekly Price Chart
In contrast, the ongoing bear market in Dogecoin is relatively short, but shows a similar trend trajectory to the period from 2018 to 2020, as shown in the above figure. Therefore, after breaking through the downward channel, DOGE may fluctuate within its current Fibonacci range of 0-0.236 (or the range of 0.055-0.176 US dollars).
In other words, DOGE may revise towards $0.055 by the end of this year, which is about 60% lower than the current price level. On the contrary, if it immediately breaks the 0.236 Fibonacci line, DOGE may set $0.25 as its next upward target.
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