Lookonchain (@lookonchain) tweeted this morning that the price of Dogecoin (DOGE) increased by about 30% shortly after Twitter changed its webpage logo icon to DOGE's icon. The fifth DOGE holder, based on the tweet, transferred 650 million DOGE, or approximately $61.3 million at current prices, out shortly after the price increase. Traders and investors are speculating that this holder is none other than Elon Musk, the DogeFather himself.
Dogecoin (DOGE) Market Situation
DOGE is now the seventh-largest project in terms of market capitalization, having recently surpassed Ethereum-killer Cardano (ADA). DOGE's price is up more than 25% at press time, with a market cap of $13.651 billion.
This has increased its already positive weekly price performance, bringing the total weekly gain to +35.64%. As a result, the price of DOGE at press time is $0.09835.
DOGE has shown similar strength against the leading cryptos Bitcoin (BTC) and Ethereum (ETH), and is currently up 25.37% against BTC and 24.47% against ETH.
DOGE trading volume has also increased by 557/36% in the last 24 hours. At press time, the total trading volume for DOGE was $4,594,205,983.
Technical Overview of Dogecoin (DOGE)
DOGE's price comfortably broke out of the consolidation zone on its 4-hour chart between $0.07126 and $0.08452 in the last 24 hours with a 25+% move yesterday evening. Since then, the price of DOGE has gradually increased to its current level.
On DOGE's 4-hour chart, the 9 and 20 EMA lines show that the shorter EMA was on the verge of crossing bearishly below the 20 EMA line yesterday. However, the 9 EMA made a sharp turn prior to yesterday's price surge and is now trading above the 20 EMA line.
The RSI indicator on DOGE's 4-hour chart indicates that the price of DOGE has reached a peak, as the RSI line has leveled out in overbought territory. This should be noted by investors and traders as it could be an early indication of a DOGE drop in the next 24-48 hours.
DOGE's price breakout appears to have been foreshadowed in the run-up to the move, with the altcoin's price printing higher lows since 10 March 2023. DOGE's price had been hovering around the 9 and 20 EMA lines on the daily chart prior to yesterday's breakout.
The two EMA lines triggered a bullish cross yesterday, with the 9-day EMA line crossing above the 20-day EMA line. At the time of writing, the bullish technical flag triggered by both EMA lines was still active, as the 9-day EMA was trading above the 20-day EMA line.
DOGE is currently trading near a key resistance level of $0.09842. If the meme coin's price does not close above this level by the end of today's trading session, it risks falling to the nearest support level of $0.08974 in the next 24-48 hours.
The daily RSI line is in overbought territory, which supports this bearish thesis and suggests that the price of DOGE may fall in the next 24-48 hours. However, a close above the aforementioned $0.09842 today will result in DOGE's price continuing its rally in the next 24-48 hours, with an upside target of $0.10453.
There is a lot of economic data coming out in the United States this week, which could lead to a volatile week for high-risk asset classes like cryptocurrency. Volatile crypto classes, such as meme coins and other low-cap, speculative cryptos, may feel the brunt of this turbulence. The first piece of economic data to come out of the United States will be the JOLTs Job Openings, which will be released later today.
Tomorrow sees the release of the ISM Non-Manufacturing PMI and the U.S. Trade balance. Finally, this Friday will see the release of Nonfarm Payrolls and the Unemployment Rate.