28 Oct 2022 Josphat Kariuki
Dogecoin Soars After Musk Officially Buys Twitter
Dogecoin, which started solely as a unit of the meme culture, is yet again going „to the moon“ after DOGE endorser Elon Musk is on the final straight to become the new Twitter leader.
The ninth-largest crypto to date exploded from a 7-day low of $0.05886 per DOGE only to reach a high of $0.08512 before settling down to a current price point of $0.08506.
CEO and co-founder of Mudrex Edul Patel highlighted that the bullish rally is due to investors buying the dip after Musk went into Twitter HQ with a sink in his hands. Elon Musk’s Twitter acquisition drew the attention of investors, as trading volumes for the meme coin exploded, reaching a daily figure of over $3 billion.
“Markets tend to react more to speculations and hype when a particular event is nearing than during the actual event. A significant rally in the blue-chip tokens and altcoins space gives more impetus to the meme coin momentum.” Patel added.
The path to orbit
Dogecoin’s massive 45% price leap over the past seven days coincided with an overall bullish trend in the crypto sector, but no other project in the top 100 received such a welcoming price push. The bull run with DOGE, however, does not seem to stop here as its green candles continue to register massive spikes in the price chart.
Analysts tried putting DOGE’s figures in some form of metrics, and it turns out that the RSI-14 graph is rising vertically and trading near the level of 80, hinting at an overbought zone that may soon crash if the hype ends. Furthermore, indicators like the Bollinger bands and the EMA-200 trendline, currently sit around the $0.8 mark, so experts are considering Dogecoin to come back at $0.1 territory, as the last time DOGE was afloat at $0.1 was in May.
However, analysts are also alert to the possibility of DOGE crashing if the interest draws dead on the ninth-largest crypto to date. Indeed, the Bollinger bands’ lower limit is $0.056, which would act as a last resort of support if Dogecoin comes crashing down. If DOGE plunges below that zone, a possible end zone for the fall would be $0.0488.
Overall crypto uptrend
This week may turn pivotal for the entire crypto sector, as its market capitalization is inching toward $1 trillion. Bitcoin is still up over the past seven days, with a current price point of $20,504.54 per BTC and an eight percent weekly price increase.
Ethereum, on the other hand, managed to secure a 20% weekly price gain, staying above $1,500. Almost all of the other projects in the crypto top 100 ranking are recording positive weekly price changes, with increases anywhere between seven and twenty percent.
On the downside, Maker (MKR) is among the top losers, shedding 12% off its price tag over the past seven days.
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