Cryptocurrency

Dogecoin’s [DOGE] trading volume rallies by over 400%, thanks to…


According to a securities filing on 4 October, Elon Musk despatched a letter to Twitter declaring his intentions to observe by on his deal to purchase the social media platform Twitter. The Tesla CEO additionally shared a tweet on the identical.

Following this information, Dogecoin [DOGE] holders took to trading as the value of the Elon-backed meme token shot up by 8% within the final 24 hours.

Furthermore, as per knowledge from the cryptocurrency value analytics platform CoinMarketCap, the meme token’s trading volume rallied astronomically by over 400% throughout the similar interval.

Data from Santiment revealed a surge in DOGE’s whale transactions and its common alternate funding charges, that are two nice predictors of value route change. 

Source: Santiment

It is frequent information {that a} rally in an asset’s whale transactions rely and in its common alternate funding charges are indicators of an imminent value rally. But let’s see DOGE within the final 24 hours to evaluate the validity of this thesis.

Buyers are market movers

According to knowledge from CoinMarketCap, the meme token exchanged palms at $0.06492, as of this writing. Trading volume had additionally rallied by 428% within the final 24 hours. 

The sudden surge in value and trading volume was probably the most motion DOGE witnessed within the final week, as per knowledge from Santiment.

Dogecoins DOGE trading volume rallies by over 400 thanks to…

Source: Santiment

All that glitters…

On a every day chart, following the information of Elon’s provide, DOGE’s Money Flow Index (MFI) continued on its uptrend to mark its spot within the overbought area. At press time, the MFI was 82. 

DOGE’s Chaikin Money Flow toed an identical path. As of this press, the dynamic line (inexperienced) of the Chaikin Money Flow (CMF) rested at 0.05 above the middle line. In an uptrend, this indicated that purchasing stress for DOGE continued to extend. 

Furthermore, the Relative Strength Index (RSI) was positioned at 56.34 above the 50-neutral area at press time.

1664994954 249 Dogecoins DOGE trading volume rallies by over 400 thanks to…

Source: TradingView

Look earlier than you leap

On the opposite hand, a have a look at DOGE’s four-hour chart despatched cautionary alerts. Although nonetheless excessive, the positions of the MFI, CMF, and RSI confirmed sellers steadily returning to the market. 

Following the information of 4 October, these indicators climbed to overbought highs. Failing to maintain the momentum, the sellers have initiated a correction downwards.

At press time, RSI was 66 approaching the middle line; MFI was 73, having misplaced its place on the overbought area, and the CMF was noticed at 0.25. 

1664994954 947 Dogecoins DOGE trading volume rallies by over 400 thanks to…

Source: TradingView

At press time, the weighted sentiment metric was positioned in a downtrend, indicating a diminishing sentiment within the DOGE market.

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