Popular cryptocurrency Dogecoin (DOGE) experienced another price surge following a tweet from Tesla CEO Elon Musk. The dog-themed cryptocurrency saw a 4% jump just a few minutes after Musk’s post.
Musk has previously supported DOGE on multiple occasions via his Twitter account, often posting memes and comments about the cryptocurrency. His tweets have been known to cause significant price movements in the market, with DOGE often surging by double-digit percentages following his endorsements.
Musk’s Tweet Causes Another Dogecoin Surge, But Will It Be Short-Lived?
Despite experiencing a surge in price following Elon Musk’s tweet, DOGE’s value remains considerably lower than its July high of $0.07518. At its peak, the cryptocurrency rose from $0.069 to $0.072 but soon lost some of its gains.
Currently, DOGE is trading around the $0.070 mark, at $0.0687 at the time of writing. Nonetheless, DOGE is still up by 3% in the 24-hour timeframe.
It’s important to note that DOGE’s recent price movements have been encouraging. Despite being range-bound for the past two weeks, DOGE’s price has managed to maintain above its 200-day Moving Average (MA), which is a positive sign for the potential continuation of bullish momentum.
In addition, DOGE’s average directional movement index (ADX) indicator is pointing towards another attempt to breach and regain its July high. The ADX is currently peaking to the upside, which indicates that the altcoin is gaining strength. Furthermore, DOGE’s Squeeze Momentum Indicator suggests that the cryptocurrency is entering another potential uptrend phase, which its ADX also supports.
All these factors combined could help DOGE regain the $0.01 mark it reached in April. Nevertheless, despite its recent surge in price, DOGE may face challenges in maintaining its uptrend due to low trading volume. In addition, the cryptocurrency is expected to encounter significant resistance in the near term.
If DOGE can sustain its uptrend, it will likely face challenges from the 50-day Moving Average (MA) currently at $0.07481. Furthermore, DOGE must overcome a resistance wall at $0.0752 to regain its July high.
According to Token Terminal data, DOGE’s market capitalization is $9.83 billion, with a circulating supply of tokens. Its fully diluted market capitalization is also $9.83 billion.
However, DOGE’s price-to-fully-diluted ratio (P/F ratio) is currently at an extremely high level of 16,006.25x, indicating that the cryptocurrency is trading at a premium relative to its fully diluted market capitalization. The P/F ratio has increased by 226.7% over the past 24 hours, suggesting that there may be increased demand for DOGE in the market.
In conclusion, while DOGE’s recent surge in price can be attributed to Musk’s tweet, it remains to be seen whether it will continue to experience significant price movements in response to social media mentions and other media attention.
Featured image from iStock, chart from TradingView.com