Connect with us

Altcoins

Dogecoin critics will be appalled to know that DOGE rallied 46.48% because…

Since Musk’s official tweet confirming the acquisition of Twitter, the price of DOGE has seen volatile action. On the 4-hour chart, DOGE rallied with a 16.18% increase over the last day.

Published

on

Dogecoin critics will be appalled to know that DOGE rallied 46.48% because...
Source: Unsplash


Dogecoin [DOGE] saw an impressive rally over the past week, as its price rose from $0.059 on 25 October to $0.086, at the time of writing. Markedly, the meme coin’s price crossed $0.085 for the first time since 17 August. Much to the surprise of investors, it rallied by 46.48% in the past seven days.

Now, DOGE’s unexpected price increase is, indeed, great news for investors. Interestingly, according to what the market perceives, there are two major reasons behind its spike. Both of these are seemingly unrelated- Elon Musk’s Twitter acquisition and Dogecoin’s great burn.

Timing is everything

Elon Musk has been affecting Dogecoin’s price since 2019, when he simply tweeted, “Dogecoin rulz.”

As it is well documented, with time, the meme coin became synonymous with Musk. This time was no different as the price of DOGE increased by 10% when Musk changed his Twitter bio to “Chief Twit.”

Since Musk’s official tweet confirming the acquisition of Twitter, the price of DOGE has seen volatile action. On the 4-hour chart, DOGE rallied with a 16.18% increase over the last day.

However, its leading indicator RSI rested at the neutral mark. Thus, implying that the rally was losing strength. Even the volume oscillator was registering new lows, empowering bears to take control of the market soon.

Source: TradingView

Surprisingly, the news of Musk buying Twitter coincided with the news of DOGE’s great burn. On 23 October, the Dogechain governance platform announced a proposal that would burn 80% of the existing Dogecoin, alongside feedback on whether the vesting period of the remaining airdrops should be reduced from 46 to six months. There was overwhelming support for both proposals, with 99.9% votes in favor of the great burn.

What about the metrics?

Well, its transaction volume in USD saw a steep rise to $653.6M, at the time of writing. There was an increase in the number of whales making transactions in the network. This clearly showed that investors’ sentiment was reviving.

Source: Santiment

Whether DOGE will continue its climb or succumb to the market pressure, remains to be seen. However, investors should exercise caution before making any sort of trading moves.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Saman is a News Editor at AMBCrypto. Her background in History and English expanded on her knack for editing and presenting all sides of a story without bias. With a strong will to learn, Saman is always up for exploring unknown territory, and crypto, with its ever-changing landscape, offers just that.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.