- DOGS crypto surged +20% on Wednesday following Durov’s release from jail.
- Can the uptrend momentum continue amidst weak market sentiment?
As a seasoned researcher with years of experience tracking the cryptocurrency market, I must admit that the sudden surge of DOGS following Durov’s release from jail was quite intriguing. While it’s always fascinating to witness such rapid price movements, I find myself often reminded of the unpredictable rollercoaster ride that is the crypto world.
On August 28th, Wednesday, Telegram CEO Pavel Durov was freed from a French prison, which led many cryptocurrency projects associated with its messaging app to surge in value. Of all the projects, DOGS crypto, a memecoin native to Telegram, seemed to perform the best following the news about Durov.
1) It ranked number one on CoinMarketCap, experienced a surge of 22% over the last day, and was the most talked-about token on their tracking service.
The rally for dogs (cryptocurrency) was nearly twice as much as the second-highest daily gainer, and it went in the opposite direction compared to significant declines seen in the leading cryptocurrencies.
Durov boosted DOGS?
Nevertheless, it appeared that the Durov effect was short-lived because although he was freed from prison, his travel restrictions within France remain indefinitely. The market seems to have readjusted following the initial excitement observed in the DOGS markets.
As I pen this analysis, it’s worth noting that the Open Interest (OI) rates in the derivatives market have seen a significant decrease of approximately 18%, equating to around $24 million. This decline hints at a modest shift in the previously bullish market sentiment, as liquidity seems to be withdrawing from the DOGS futures market, suggesting a potential softening of investor confidence or position adjustments.
It’s important to point out that there’s been a significant increase in the attention towards DOGS following its listing on major exchanges like Bybit, Binance, and OKX, as well as others. But after being listed on Binance this week, it experienced a drop of more than 20%.
So, the Durov release was just an added catalyst.
However, the spot CVD (Cumulative Volume Delta) fluctuated at the time of writing. The spot CVD measures the difference between buy and sell volume to further gauge market sentiment and traders’ position.
In simple terms, the CVD reading for the flat spot suggested that DOGS bought an equivalent amount of what it sold, indicating a balanced stance. This equilibrium position implied that DOGS’s price might go up or down since neither buying nor selling was dominant.
At the moment, the current trading price for DOGS is $0.0014, which is a small decrease from its most recent peak of $0.0016 on the price charts.
If the optimism increases and DOGS endeavors to regain its latest peak at $0.0016, the 50% and 38.6% Fibonacci levels could serve as crucial short-term markers to keep an eye on.
Read DOGS Price Prediction 2024-2025
If a negative sentiment persists, it may not be possible to avoid a pullback to around $0.0012 (representing the 78.6% Fibonacci level).
From my perspective as an analyst, a bullish reversal, where Bitcoin [BTC] recovers and makes up for its recent losses, could potentially counteract this bearish outlook I’ve been considering.
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2024-08-30 01:11