As the rest of the market corrected in the last 24 hours, the leading meme coin Dogecoin [DOGE], also rallied significantly. Following reports that Elon Musk’s acquisition of social media giant Twitter will be completed on 28 October, the price of the Elon-backed token has since surged.
Entering Twitter HQ – let that sink in! pic.twitter.com/D68z4K2wq7
— Elon Musk (@elonmusk) October 26, 2022
According to data from the on-chain analytics platform Santiment, during the intraday trading session on 26 October, DOGE’s price rose above $0.072 for the first time in the past ten weeks.
Still, on its rally, DOGE exchanged hands at $0.07768 as of this writing, having grown by 17% in the last 24 hours, per data from CoinMarketCap.
In addition to a rally in its price, DOGE’s trading volume and the count of whale transactions executed on the network on 26 October also surged. According to Santiment, these rose to levels last seen in August.
Over 450 DOGE whale transactions that exceeded $100,000 had been completed before 23:00 UTC on 26 October. As of this writing, the count stood at 190.
In addition, DOGE’s intraday trading volume touched a high of $1.18 billion during yesterday’s (26 October) trade. At press time, this sat at $1.71 billion, having grown by 170% in the last 24 hours, according to CoinMarketCap.
You can DOGE these Ls
While the rally might have offered the much-needed respite to long-term holders, DOGE’s price movements on a daily chart sent warning signals. Key indicators revealed that the meme coin was severely overbought at the time of writing, and a correction was due to follow.
DOGE’s Relative Strength Index (RSI) was spotted far from the neutral spot at the overbought region of 79. The indicator’s sudden surge from 44.82 (below the mid-point) on 24 October to 79 (deep in the overbought zone) indicated a boom in buying pressure in the last few days. Such highs are usually followed by buyers’ exhaustion and inability to sustain the same, hence a reversal.
Toeing a similar path, DOGE’s Money Flow Index (MFI) was pegged at 85 at press time. Between 24 October and press time, the indicator’s value rose from 45 to its current position. This also suggested that the meme coin was overbought, and the bears would soon initiate a reversal.
Surprisingly, as a result of its prolonged decline, DOGE’s Market Value to Realized Value (MVRV) ratio on a 1-day moving average revealed that holders held at a loss in spite of the growth in price.
At -30.42% at press time, most people would realize losses if they all sell their holdings at the current price.