Can DOGE Avoid A Dive? Sell Pressure Puts Memecoin To The Test
06 März 2024 - 8:28AM
NEWSBTC
Dogecoin (DOGE) has solidified its position as the eighth-largest
cryptocurrency by market capitalization, leaving industry observers
amused and sparking humor from Cardano’s founder, Charles
Hoskinson. The memecoin experienced a substantial upswing,
propelling its market cap to approximately $28 billion, surpassing
Cardano’s $27 billion valuation. Related Reading: Bitcoin On The
Brink, Price Soars Above $68,000 – Will BTC Break Its 2021 Record?
DOGE Market Dynamics And Technical Indicators At the time of
writing, Dogecoin was trading at $0.16, reflecting a remarkable
103% surge in the past seven days. This increase catapulted DOGE
ahead of major cryptocurrencies like AVAX, DOT and TRON. Despite
this positive momentum, technical indicators suggest a nuanced
situation. Source: Coinmarketcap The Relative Strength Index (RSI)
for Dogecoin stands at slightly above 67, signaling an overbought
condition. While the price is on an upward trajectory, there is a
possibility of susceptibility to a corrective phase. Meanwhile, the
Chaikin Money Flow (CMF) at nearly 0.20 presents a mixed picture. A
positive CMF indicates strong buying pressure, but an upward trend
may also signify potential profit-taking, hinting at a possible
sell-off. Sentiment And Social Activity Social dynamics appear to
play a pivotal role in Dogecoin’s recent surge. The social volume,
often linked with price movements, witnessed an uptick, indicating
a positive correlation between growing interest and discussions
around Dogecoin and its upward momentum. Weighted sentiment, a
crucial metric reflecting community sentiment, has shown an
increase, with positive comments outweighing negative ones. This
surge in positive sentiment adds fuel to DOGE’s positive momentum
in the market. DOGE market cap currently at $23.7 billion. Chart:
TradingView.com Holder Metrics, Cautionary Signs Despite the
positive indicators, cautionary signs emerge as the rise in the
percentage of short positions against DOGE reveals a cautious
sentiment among traders. The increase in short positions suggests a
bearish outlook, prompting investors to be mindful of potential
impacts on the coin’s prices, Source: Santiment Industry
Observations The overtaking of Cardano by Dogecoin in market
capitalization has drawn attention from industry observers,
including Hoskinson. In a light-hearted manner, he declared the
beginning of what many are calling “alt-season.” This observation
adds a layer of industry perspective to the ongoing developments in
the cryptocurrency market. That moment Doge flips Cardano. It’s
officially alt-season kids pic.twitter.com/cjNGNGKoi3 — Charles
Hoskinson (@IOHK_Charles) March 5, 2024 Dogecoin’s recent surge to
become the eighth-largest cryptocurrency brings a mix of excitement
and caution. While positive sentiment, social activity, and
industry observations contribute to its momentum, technical
indicators and cautionary signs suggest a need for prudence.
Related Reading: FLOKI Grows Over 300% As Memecoin Breaches $400
Million TVL – Details Featured image from Freepik, chart from
TradingView
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