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Why Dogecoin Price Exploded 80% Today

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Dogecoin has received a major boost from a number of positive stimuli over the past few days as it maintains its bullish momentum.

This led to dog-themed cryptocurrencies gaining 125% over the past seven days, and a 129% gain in bi-weekly performance.

  • Dogecoin Gains 80%, Peaking at $0.145 Today
  • DOGE records a 125% increase in the last 7 days
  • Altcoin RSI Suggests Immediate Price Correction

According to press tracking, coin geckothe crypto is trading at $0.134, jumping 57% in the last 24 hours. Within the day, the asset peaked at $0.145 and rose as much as 80%.

Many believe Dogecoin’s rise today may have been caused by the hype brought on by Elon Musk’s Twitter hijack. Even one-word tweets increase their value.

Meanwhile, analysts believe some of the reasons for Dogecoin’s strength may include buying DOGE whales, improving market conditions, and the so-called “Elon Musk effect.”

However, while this development will leave investors ecstatic, they are strongly warned that altcoins could soon experience a severe price correction.

Dogecoin could lose momentum quickly

Dogecoin is currently ranked 8th among the top 10 cryptocurrencies by market capitalization.thBitcoin, Ethereum, Cardano, XRP, Solana, etc., and was the best performer in terms of profit over the 7 days.

its upward movement It has broken out of the $0.135 resistance marker. This has proven to be a real challenge for the property over the past few weeks. The 24-hour trading volume also increased by 192% to reach $617.8 million.

Source: TradingView

However, one of the altcoin technical indicators is bad news for investors enjoying a bullish continuation.

Specifically, DOGE’s daily Relative Strength Index (RSI) has moved towards overbought territory. This is a sign of an immediate and significant price adjustment.

While it is still possible for the token to reach the $0.17 marker, it is likely to slowly lose momentum and eventually retest the $0.11 and $0.35 support levels.

At the moment, Dogecoin has low volatility. Therefore, the aforementioned price “trend” could prove to be true.

Investors should be wary of those looking to buy now, especially in hopes of making a profit on the ensuing price spike.

Dogecoin is no closer to replicating its 2021 run

2021 was a really good year for the coin as it was able to achieve milestone values ​​that may prove difficult to replicate at present.

On May 8th of last year, the cryptocurrency peaked and registered at $0.731. record high (ATH). Consent was unable to sustain its impressive run as it slowly declined over the course of several months.

Today the asset has already lost 81% of its value. DOGE is also -53.4% ​​in year-to-date performance tally.

DOGE total market cap at $16.6 billion on the weekend chart | Featured image from Business Insider, Chart: TradingView.com

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.

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