The cryptocurrency that started as a joke has surprised both enthusiasts and skeptics to become a leading force in the crypto sphere.
1. From being a meme coin based on the Shiba Inu dog, Dogecoin seems now to be catching the attention of traders and investors.
2. With signs reminiscent of its massive bull run back in 2017-2018, could we be on the brink of another surge, with more than a billion DOGE tokens traded in just 24 hours?
Dogecoin’s Recent Activity and Its Significance
In the last 24 hours, more than one billion Dogecoin tokens have changed hands across the market. This extraordinary surge in trading activity shows that ever more people are getting in on the act, and it’s pushing the price and market sentiment of the coin ever higher. To be clear, the token exchange is clearly indicating upcoming favorable price movement. And this kind of volume in general is signaling that there’s a lot of interest in the coin at the moment.
The price of Dogecoin has been rising consistently in recent days, revealing the same pattern seen in previous cycles.
So, a lot of traders and analysts are paying close attention to where it might go next, particularly because of the coin’s monthly chart formation.
This month, the price action has formed a “Doji” candlestick pattern, signaling indecision in the market that often precedes a shift in momentum.
A Doji pattern means the market’s been in equilibrium between buying and selling pressure, and a breakout could be imminent.
This Doji pattern is curiously reminiscent of the position it occupied in the previous bullish cycle that took Dogecoin to new heights between 2017 and 2018. The similarity in chart patterns has some speculating that Dogecoin is on the verge of another significant bull run, one that could push its price to levels not seen since the peak of the 2017-2018 rally.
The Role of Hype and Elon Musk
Over the last few years, a lot of Dogecoin’s price movement has been due to a heady blend of social media hype, community fervor, and, of course, the tweets of Tesla and SpaceX CEO Elon Musk, who seems to have taken Dogecoin as his pet cryptocurrency. Musk has fanned the Dogecoin flame through his tweets, memes, and public endorsements, which have sent the price rising every time. It’s hard to keep from noticing Musk’s influence on Dogecoin, in both a negative and a positive sense.
Speculation in the crypto markets has often been taken to a new level thanks to Musk’s tweets, and Dogecoin has repeatedly come out of this exposure as a winner. The electric entrepreneur’s tweets on Dogecoin tend to make it leap in price and trading volume, as they bring more attention to the project and attract both kinds of investors—traders in it for a short burst and believers in it for the long haul. Despite the frequent volatility that ensues when Musk gets active, Dogecoin’s community remains one of its strongest assets.
Looking Ahead: Is Another Bull Run in Store?
At present, many analysts are making a case for Dogecoin as being on the verge of a major price surge—this in light of current market conditions. The recently observed price action of the coin has a number of analysts drawing parallels to the 2017-2018 bull run. The 2017-2018 bull run is often held in the same laudatory light as the 2013 bull run. Both were followed by significant institutional interest and both (as is now known) ended with the BTC price collapsing to what now seem like astronomically low levels.
Really, to be fair, one could make a case for any cryptocurrency as having the potential to be on the verge of a price breakout with how the current market seems to be acting. But for many analysts, it seems as if Dogecoin is the coin that is potentially most primed for a price breakout. These analysts point to a number of different facets and factors whereupon to base their argument.
Although the cryptocurrency market is extremely unstable, the present price action of Dogecoin has traders feeling quite optimistic, particularly those who are old enough to remember the elated days of 2017-2018. During that time, Dogecoin experienced a very sharp rally, shooting up to an all-time high before retracting. Now, with market sentiment seemingly improving and interest in Dogecoin apparently intensifying, some traders are speculating on the likelihood of a similar price performance happening again.
Nonetheless, the cryptocurrency market is still an unpredictable space. The Doji pattern may very well indicate the commencement of a bull run, but it could also be a sign that the market is temporarily consolidating before the next big move. As always, exercise caution, and keep an eye on the market to determine the best time to enter into or exit from a position.
To sum up, Dogecoin’s extraordinary trading volume, along with the appearance of a Doji candlestick pattern, has many traders contemplating whether another major price rally is upcoming. The seemingly unstoppable hype train continues to roll along, and the meme coin’s steadfast community shows no signs of waning support. DNA from both previous Dogecoin price explosions is present in current momentum. Still, a reprisal seems a longer shot than it did this summer, when mainstay exchanges were purportedly warming up to Dogecoin. Hopes are high, and the Dogecoin community is obviously as hyped as ever.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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