- Market sentiment around Dogecoin turned bullish.
- It’ll be important for DOGE to reclaim $0.11 in order to recover from past losses.
After a week of falling prices, Dogecoin [DOGE] has recently gained bullish momentum, partly thanks to Elon Musk’s latest tweet. The Tesla CEO’s support for DOGE may have sparked renewed optimism around the memecoin.
Will Dogecoin reclaim $0.11 soon?
The bears pushed DOGE’s price down by nearly 4% in the last seven days. But the last 24 hours were in investors’ favor as the memecoin’s value increased by more than 3%.
At the time of writing, DOGE was trading at $0.09597 with a market capitalization of over $14 billion, making it the 8th largest crypto.
A possible reason behind this newfound bullish momentum could be Elon Musk’s tweet.
The world’s richest man made a post on X, which said “Department of Government Efficiency,” or D.O.G.E. Historically, Musk’s tweets have had major impacts on DOGE’s price. Things turned out to be the same this time as well.
AMBCrypto then checked Santiment’s data to better understand whether Musk’s actions impacted market sentiment. As per our analysis, Dogecoin’s social volume did register an increase.
Additionally, its weighted sentiment also moved inside the positive zone. This suggested that bullish sentiment around the token has increased.
Source: Santiment
Meanwhile Crypto Tony, a popular crypto analyst, posted a tweet. As per the tweet, it’s crucial for DOGE to reclaim $0.11 in order for it to recover.
Therefore, AMBCrypto assessed the memecoin’s on-chain data to see the chances of it sustaining the bull rally, which could push DOGE towards $0.11.
Source: X
Going forward
Our look at Santiment’s data revealed that Dogecoin’s MVRV ratio improved in the last few days, which was a bullish signal. After a sharp decline, the memecoin’s percentage of supply in profit also went up.
However, the concerning metric was the NVT ratio as it moved northward. Whenever the metric increases, it indicates that an asset is overvalued, hinting at a possible price correction.
Source: Santiment
Nonetheless, at press time, DOGE’s fear and greed index was in a neutral position, suggesting that the market could head in either direction.
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As per our analysis, it’ll be vital for DOGE to first go above $0.10 in order to reclaim $0.11. This was the case as Dogecoin’s liquidity will rise sharply at $0.10.
Generally, a hike in liquidation results in short-term price corrections. However, if the bears take charge, then DOGE might plummet to $0.088.
Source: Hyblock Capital
