One of the most recognized memecoins has risen more than 100% in seven days, it seems that the recent interest in DOGE, which has reached a new high, was awakened by the definitive purchase of Twitter by Elon Musk, and we already know that this gentleman has influenced the price of this type of coins before.
Source: pexels.com
As we can see from the daily price charts, DOGE surged nearly 150% over the past seven days, all on the heels of news of Elon Musk's recent acquisition and takeover of Twitter. Its market capitalization also experienced a huge increase, approaching $20 billion on October 29, just two days after the Twitter acquisition deal was reportedly completed. It appears that the price rally was driven by the hope that DOGECOIN will play an important role in Twitter.
Source: Screenshot taken from Tradingview.com.
And although by the time of this publication DOGE is trading at $0.115, and its market cap has dropped to approximately $15400 million, this momentum managed to put it in the 8th spot in Coinmarketcap's cryptocurrency ranking, displacing Cardano.
Source: Screenshot taken from Coinmarketcap.com.
The truth is that this October 29 the price of this meme coin jumped almost 80% to almost $0.15, a large daily increase that has not been recorded since April last year, leading DOGE to trade again above $0.1, something that has not happened since May, which has already allowed many traders to obtain significant profits.
The increase in the price, accompanied by the increase in trading volume after the completion of the acquisition of Twitter shows the hope that investors have that DOGE will have a prominent role in the microblogging chain, remember that Elon included DOGE as a payment method to purchase products from Tesla and SpaceX, and earlier this year he had already flirted with the idea of doing the same to purchase Twitter subscriptions.
However, the current movement in the price of DOGE happened to be overbought, since, as we can see with the RSI indicator, an indicator that shows us the overbought or oversold levels of a cryptocurrency, the indicator rose above the 70 level on the daily chart, that is, it has moved into the territory of overbought.
Source: Screenshot taken from Tradingview.com.
But while this does not necessarily mean that there will be an immediate trend change, it does highlight the great momentum that the price had due to the euphoria experienced by the market, which at some point will also drive a correction.
What is certain is that many investors will surely have taken advantage of this DOGE price rally, generating big profits, now let's wait to see how the market unfolds in the coming days and if DOGE will certainly get enough attention from Twitter to continue with this bullish rally and take DOGE to new highs.
Well friends, I hope you liked the information, see you next time!