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Common cryptocurrency Dogecoin (DOGE) skilled one other value surge following a tweet from Tesla CEO Elon Musk. The dog-themed cryptocurrency noticed a 4% bounce just some minutes after Musk’s publish.
Musk has beforehand supported DOGE on a number of events by way of his Twitter account, typically posting memes and feedback in regards to the cryptocurrency. His tweets have been identified to trigger vital value actions out there, with DOGE typically surging by double-digit percentages following his endorsements.
Musk’s Tweet Causes One other Dogecoin Surge, However Will It Be Brief-Lived?
Regardless of experiencing a surge in value following Elon Musk’s tweet, DOGE’s worth stays significantly decrease than its July excessive of $0.07518. At its peak, the cryptocurrency rose from $0.069 to $0.072 however quickly misplaced a few of its positive aspects.
At present, DOGE is buying and selling across the $0.070 mark, at $0.0687 on the time of writing. Nonetheless, DOGE continues to be up by 3% within the 24-hour timeframe.
It’s necessary to notice that DOGE’s current value actions have been encouraging. Regardless of being range-bound for the previous two weeks, DOGE’s value has managed to take care of above its 200-day Transferring Common (MA), which is a optimistic signal for the potential continuation of bullish momentum.
As well as, DOGE’s common directional motion index (ADX) indicator is pointing in direction of one other try to breach and regain its July excessive. The ADX is presently peaking to the upside, which signifies that the altcoin is gaining energy. Moreover, DOGE’s Squeeze Momentum Indicator means that the cryptocurrency is getting into one other potential uptrend section, which its ADX additionally helps.
All these components mixed may assist DOGE regain the $0.01 mark it reached in April. However, despite its current surge in value, DOGE might face challenges in sustaining its uptrend as a consequence of low buying and selling quantity. As well as, the cryptocurrency is anticipated to come across vital resistance within the close to time period.
If DOGE can maintain its uptrend, it’s going to doubtless face challenges from the 50-day Transferring Common (MA) presently at $0.07481. Moreover, DOGE should overcome a resistance wall at $0.0752 to regain its July excessive.
In keeping with Token Terminal knowledge, DOGE’s market capitalization is $9.83 billion, with a circulating provide of tokens. Its totally diluted market capitalization can be $9.83 billion.
Nevertheless, DOGE’s price-to-fully-diluted ratio (P/F ratio) is presently at a particularly excessive stage of 16,006.25x, indicating that the cryptocurrency is buying and selling at a premium relative to its totally diluted market capitalization. The P/F ratio has elevated by 226.7% over the previous 24 hours, suggesting that there could also be elevated demand for DOGE out there.
In conclusion, whereas DOGE’s current surge in value will be attributed to Musk’s tweet, it stays to be seen whether or not it’s going to proceed to expertise vital value actions in response to social media mentions and different media consideration.
Featured picture from iStock, chart from TradingView.com
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