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Market sentiment around Dogecoin turned bullish.
It’ll be important for DOGE to reclaim $0.11 in order to recover from past losses.
As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and memecoins rising from obscurity to mainstream popularity. In the case of Dogecoin [DOGE], recent developments have sparked renewed interest, especially after Elon Musk’s latest tweet.
In the past seven days, the value of Dogecoin [DOGE] has shown a surge in positive movement. This upturn could be partially attributed to Elon Musk’s recent tweet, as his backing for DOGE might have ignited fresh enthusiasm among investors regarding this meme-inspired cryptocurrency.
Will Dogecoin reclaim $0.11 soon?
Over the past week, the bears managed to lower DOGE‘s price by almost 4%, but the last day has been positive for investors, with the meme coin seeing a rise of over 3% in its value.
Currently, DOGE is being exchanged for approximately 0.09597 USD in the markets, boasting a market cap exceeding 14 billion dollars. This positions DOGE as the 8th largest cryptocurrency.
A possible reason behind this newfound bullish momentum could be Elon Musk’s tweet.
Elon Musk, the wealthiest person globally, shared a post about “Department of Government Efficiency,” or D.O.G.E., on platform X. Previously, Musk’s tweets have significantly influenced the price of DOGE. This time was no exception.
To gain a clearer perspective on whether Elon Musk’s activities influenced market sentiment, we examined data provided by Santiment. Our findings revealed that the social activity surrounding Dogecoin indeed saw a rise.
Furthermore, its sentiment score shifted towards the positive side, indicating a rise in optimistic feelings towards the token.
Currently, well-known cryptocurrency analyst Crypto Tony shared a tweet. According to his post, regaining the $0.11 level is vital for Dogecoin’s potential recovery.
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.
Going forward
Examining data from Santiment showed an improvement in Dogecoin’s MVRV ratio over the past few days, indicating a positive trend. Following a significant drop, the proportion of Dogecoin held at a profit has increased as well.
On the other hand, the issue lay with the NVT ratio, which showed signs of rising. An increase in this metric suggests that an asset might be overpriced, potentially indicating an upcoming adjustment or decrease in its value.
Despite this, when the news was published, Doge’s Fear & Greed Index was showing a neutral state, indicating that the market might move up or down at this point.
Is your portfolio green? Check the Dogecoin Profit Calculator
Based on our examination, reaching a price above $0.10 is crucial for Dogecoin to regain its previous level of $0.11. This is significant because we’ve observed that Dogecoin’s liquidity significantly increases at the $0.10 mark.
Typically, an increase in selling (liquidation) can lead to temporary decreases in price. But if the negative sentiment (bears) dominates, Dogecoin (DOGE) could drop down to approximately $0.088.
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2024-09-08 18:15