Prominent meme coin trying to replicate November’s 120% rally
As we mentioned in our recent market review, Dogecoin is slowly gaining momentum in the market, with the 3-day return of the current rally reaching 20%, which forms the foundation for a solid run higher. which we saw in the beginning. november.
Six days ago, DOGE successfully bounced off of the local support level and then started its way up. In less than a week, the leading meme currency has gained more than 35% to its value, leaving alternatives like Shiba Inu way behind in terms of market performance.
Such explosive performance can be linked to a number of factors, including Elon Musk’s desire to build his own “Tesla phone” if Twitter is removed from all major app stores on mobile devices.
As an alternative to payments, cryptocurrencies like Dogecoin might get implemented inside the app, making payments from all over the world possible, with no limitations whatsoever thanks to the decentralized nature of Dogecoin’s blockchain that mostly replicates Bitcoin.
However, there is much more behind DOGE’s rally than Musk’s consolidation. According to technical indicators such as exponential moving averages, Dogecoin is on the verge of a reversal as the 200- and 50-day moving averages are very close to each other.
Historically, line convergence leads to a volatility spike in either direction, which, in Dogecoin’s case, will most likely lead to an acceleration and continuation of the current rally, especially if the aforementioned rumor gains more traction among cryptocurrency investors.
At press time, Dogecoin is trading at $0.099, actively trying to break the $0.1 psychological boundary. In case of a breakthrough, the next price level to conquer would be $0.11 – the breakdown point during the previous 120% rally.
