Well-liked cryptocurrency Dogecoin (DOGE) skilled one other worth surge following a tweet from Tesla CEO Elon Musk. The dog-themed cryptocurrency noticed a 4% bounce just some minutes after Musk’s submit.
Musk has beforehand supported DOGE on a number of events through his Twitter account, usually posting memes and feedback in regards to the cryptocurrency. His tweets have been identified to trigger important worth actions available in the market, with DOGE usually surging by double-digit percentages following his endorsements.
Musk’s Tweet Causes One other Dogecoin Surge, However Will It Be Quick-Lived?
Regardless of experiencing a surge in worth following Elon Musk’s tweet, DOGE’s worth stays significantly decrease than its July excessive of $0.07518. At its peak, the cryptocurrency rose from $0.069 to $0.072 however quickly misplaced a few of its features.
At present, DOGE is buying and selling across the $0.070 mark, at $0.0687 on the time of writing. Nonetheless, DOGE continues to be up by 3% within the 24-hour timeframe.
It’s vital to notice that DOGE’s current worth actions have been encouraging. Regardless of being range-bound for the previous two weeks, DOGE’s worth has managed to keep up above its 200-day Transferring Common (MA), which is a constructive signal for the potential continuation of bullish momentum.
As well as, DOGE’s common directional motion index (ADX) indicator is pointing in the direction of one other try to breach and regain its July excessive. The ADX is at present peaking to the upside, which signifies that the altcoin is gaining power. Moreover, DOGE’s Squeeze Momentum Indicator means that the cryptocurrency is coming into one other potential uptrend part, which its ADX additionally helps.
All these components mixed might assist DOGE regain the $0.01 mark it reached in April. However, despite its current surge in worth, DOGE might face challenges in sustaining its uptrend as a result of low buying and selling quantity. As well as, the cryptocurrency is predicted to come across important resistance within the close to time period.
If DOGE can maintain its uptrend, it’s going to probably face challenges from the 50-day Transferring Common (MA) at present at $0.07481. Moreover, DOGE should overcome a resistance wall at $0.0752 to regain its July excessive.
In accordance with Token Terminal data, DOGE’s market capitalization is $9.83 billion, with a circulating provide of tokens. Its absolutely diluted market capitalization can also be $9.83 billion.
Nevertheless, DOGE’s price-to-fully-diluted ratio (P/F ratio) is at present at a particularly excessive stage of 16,006.25x, indicating that the cryptocurrency is buying and selling at a premium relative to its absolutely diluted market capitalization. The P/F ratio has elevated by 226.7% over the previous 24 hours, suggesting that there could also be elevated demand for DOGE available in the market.
In conclusion, whereas DOGE’s current surge in worth will be attributed to Musk’s tweet, it stays to be seen whether or not it’s going to proceed to expertise important worth actions in response to social media mentions and different media consideration.
Featured picture from iStock, chart from TradingView.com