- Dogecoin’s social activity surged, fueled by Elon Musk.
DOGE struggled with low volatility, but price could soon be squeezed out of the narrow range.
As a seasoned crypto investor with a knack for spotting trends and understanding market dynamics, I find myself intrigued by the recent surge of Dogecoin [DOGE]. The memecoin has been treading water since August, but the sudden spike in social activity, fueled by none other than Elon Musk, has certainly piqued my interest.
Since the middle of August, Dogecoin’s [DOGE] trajectory has primarily remained horizontal, yet optimism persists for a significant shift in its course.
Over the past two days, there’s been a significant increase in buzz surrounding the memecoin, hinting at an uptick in interest and focus.
In the previous 24 hours, Dogecoin was among the most popular topics on the platform that used to be called Twitter. This surge in interest can primarily be attributed to Elon Musk, as his latest tweet rekindled excitement about it.
Elon Musk’s tweet was a reaction to a proposal from one of his followers, who suggested that Donald Trump establish a department known as the Department of Government Efficiency (DOGE).
Elon Musk’s involvement with Dogecoin often influences its market movements, as well as public opinions about it.
It’s no surprise that Dogecoin-related social media searches increased slightly this week, but the increase wasn’t significant.
Given the current value of Dogecoin, it’s quite fitting that there’s so much buzz surrounding Elon Musk’s tweet. Right now, Dogecoin is moving within a wedge formation, which is supported by a rising floor (ascending support) and capped by a falling ceiling (descending resistance).
Can DOGE summon fresh momentum?
The key point to note is that DOGE’s recent sideways price pattern occurred just as the price entered a squeeze zone.
Simply put, an increase in market turbulence might trigger a significant price shift, which could lead to either a breakthrough or breakdown from the wedge formation.
Despite a rise in Dogecoin during the initial part of this week, the strong push beyond its current range, as indicated by the bullish momentum, didn’t materialize. This is suggested by the Relative Strength Index (RSI) not managing to surpass the 50% threshold.
If the price exceeds its current level again, it’s probably indicative of a renewed powerful uptrend, potentially surpassing the present temporary resistance as well. The potential breakout point lies above $0.11.
At the current price of $0.10 for Dogecoin, it’s 53% cheaper compared to its highest point this year in March. This lower cost could potentially entice more people to buy and stockpile (accumulate) it.
The duration for which Dogecoin is being held suggests a substantial amount of accumulation has been occurring. For instance, there were fewer than 4 million holders at the coin’s peak in March.
There were now more than 4.3 million HODLers with DOGE in their wallets, as per the latest data.
At the beginning of April, there was a peak among cruise traders and swing traders with approximately 2.3 million unique addresses. However, the most recent data reveals that currently, around 2 million of those addresses are still active.
This is likely due to the continuous downside, which has been more conducive for dip buyers.
Read Dogecoin’s [DOGE] Price Prediction 2024-2025
In February, the number of Dogecoin traders reached a high of approximately 791 million, but it has since decreased to around 112,820 by the time of the press release.
As someone who has been actively following the cryptocurrency market for several years now, I have noticed a significant shift towards the “HODL” culture, particularly with regard to Dogecoin (DOGE). Having personally experienced the rollercoaster ride of crypto prices over time, I believe that this trend could indeed favor DOGE bulls in the long term.
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2024-08-22 22:16