Dogecoin, the cryptocurrency that started as a joke, is no longer something to laugh about when it comes to its financial growth. With a notable spike in the last week, Dogecoin’s price surged over 6%, catching the eye of investors and traders alike. Over the past 24 hours, the meme-famed digital asset climbed an additional 2%, cementing its spot as the 9th largest cryptocurrency by market capitalization, which now expands over $18 billion.
The spirit among Dogecoin enthusiasts has been uplifted, as the weighted sentiment regarding the memecoin turned sharply positive. This shift indicates that the bullish mood is prevailing in the market. Additionally, Dogecoin has been basking in a high social volume, demonstrating its ongoing popularity.
The technical indicators have given mixed signals, keeping investors on their toes. A prominent crypto analyst, Ali, highlighted the TD Sequential indicator’s buy signal for Dogecoin. This model, which identifies the timing of trend exhaustion, points towards a potential price increase in the near future.
Furthermore, Dogecoin’s MVRV ratio, which measures the average profit or loss of holders who purchased DOGE within a certain timeframe, has seen marked improvement, a sign commonly associated with bullish momentum. The funding rate for Dogecoin, now in the red, further hints at an incoming price hike, as this metric reflects the cost of holding long positions in the perpetual futures market.
However, it’s not all clear skies for the memecoin. An undercurrent of concern arose as the open interest in Dogecoin decreased despite the uptick in its price. This divergence sometimes signals a forthcoming price decline, as it may indicate that fewer traders are interested in entering positions at current price levels.
Additionally, AMBCrypto’s analysis of TradingView’s data reveals a potential bullish crossover on the Moving Average Convergence Divergence (MACD), yet the Relative Strength Index (RSI) warns of a possible price drop. Moreover, the Chaikin Money Flow (CMF) chart is showing a downward trend, potentially forewarning a price correction.
In conclusion, while several indicators show encouraging signs for a Dogecoin rally, the conflicting signals from the RSI and the CMF, alongside the drop in open interest, suggest that caution is warranted. Investors should carefully consider the market dynamics and risk factors before making trading decisions in the volatile memecoin arena.
