Dogecoin price surged 5.5% during the Saturday trading session to reach $0.144. Outperforming the broader market recovery, the DOGE price rides a parabolic rally after Elon Musk’s ‘D.O.G.E.’ shootout at Trump’s campaign event, fueling renewed investor excitement. As the rising price gave a bullish breakout from a 4-month consolidation, the DOGE buyers are prepared to drive a prolonged rally.
Dogecoin Price Set for a Parabolic Rally: Here’s Why
DOGE, the largest meme cryptocurrency by market cap, has showcased a nine-day rally from $0.105 to $0.144. The 36% surge is likely driven by Elon Musk’s influence after he mentioned “D.O.G.E.” during Trump’s Pennsylvania campaign event, sparking renewed interest and excitement in the Dogecoin community.
The high-momentum rally managed to surpass $0.143 resistance, signaling the DOGE price escape from a four-month consolidation trend. Moreover, the weekly chart analysis shows a similar pattern that drove a massive rally of 29,111 % in 2021.
Comparing the price analysis shows a notable correction is DOGE price, which shifts sideways to form a bottom support in prolonged consolidation. The accumulation trend allows buyers to recuperate the bullish and trigger a ‘test pump’ to check sustainability for higher rallies.
If history repeats, the Dogecoin price experienced a final dip before igniting the massive bull run. With sustained buying, the DOGE price could rally 700% to hit the $1.17 level.
The coin price reclaiming the weekly exponential moving average (20, 50, 100, and 200) signals the buyers are strengthening their grip over this asset.
Crypto Analyst Calls Dogecoin the “Bitcoin of Memes,” Hints at Bullish Future
In a recent tweet, renowned crypto analyst DonAlt stirred the conversation around Dogecoin, calling it the “Bitcoin of memes” and reflecting on its cultural significance in the crypto space. He further emphasized its long-term relation with this dog-themed memecoin, reminiscing about his involvement with DOGE since 2014.
The Bitcoin of memes is DOGE, isn’t it?
Like when you actually think about it— DonAlt (@CryptoDonAlt) October 17, 2024
CryptoDonAlt humorously hinted at a bullish narrative for Dogecoin price prediction as he suggested ending his trading career with DOGE in 2025.
DOGE Faces Possible Pullback as MVRV Reaches Critical Levels
According to recent data from Santiment, Dogecoin’s 30-day Market Value to Realized Value (MVRV) ratio has climbed to a notable 19.7% level, signaling that short-term traders are experiencing considerable gains. The MVRV ratio, which measures the average profit or loss of traders holding DOGE within a specified time frame, is a key indicator of market sentiment.
Historically, such high MVRV values have been associated with local market tops, as traders typically look to capitalize on their gains.
The Dogecoin price could witness an occasional pullback to replenish the bullish momentum. The anticipated pullback should hold its value above the 200-weekly EMA, or sellers could drive a fresh correction trend.
Frequently Asked Questions (FAQs)
Dogecoin’s price surge, driven by a 36% rally from $0.105 to $0.144, has been fueled by renewed investor excitement following Elon Musk’s mention of “D.O.G.E.
The 30-day MVRV ratio for Dogecoin has reached 19.7%, suggesting that short-term traders are seeing significant profits
Crypto analyst DonAlt referred to Dogecoin as the “Bitcoin of memes,” hinting at its long-term cultural significance
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/why-dogecoin-price-is-about-to-go-parabolic/
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