Elon Musk’s comments on Saturday did not significantly increase the price of DOGE, which seems to be a good sign. Specifically, while holding a live conference on Twitter Spaces, the eccentric billionaire assured listeners that he was researching the future of DOGE, while also uttering the sentence that became a meme: “DOGE to the moon”. After these words, the price of the leading memecoin increased by almost 14% in 2 hours, but the momentum sold off and failed to gain any further traction.
Why is this a good sign? The fact is that every time before, the DOGE pump has been a sign of a major correction in the crypto market. Of course, it can hardly be called a stereotype, but it is. For example, at the end of October, DOGE was up more than 100% thanks to Musk buying Twitter. This happened a week before the infamous FTX exchange crashed, reducing the total crypto market capitalization by more than 20% in 2 days.
DOGE did not pump from Musk’s comment partly due to the current crypto market. Clearly the market is exhausted – sellers sold out after the FTX crash, buyers were mostly scared and stuck to a wait-and-see strategy.
Assessing DOGE’s ability to maintain upward momentum in the current volatile context
DOGE is up 5.84% between Nov 11 and 12, in contrast to most assets in the top 10. The memecoin’s current trend is different from its pre-bullish trend. According to CoinMarketCap, DOGE initially dropped to $0.81. Notably, it lost some support before the momentum changed.
According to the 4-hour chart, DOGE price is above a descending support chain since Nov. 10. Until the early hours of Nov. 12, the support was as low as $0.766. However, the accumulation and distribution of DOGE investors seems to reverse the trend.
Up to now, the accumulation and distribution has increased to 26.62 billion. This implies more demand. Therefore, this development is almost certainly a premise for an upward move.
When looking at the Relative Strength Index (RSI), the histogram shows that DOGE is approaching a solid buy zone. With the value at 50.62, it is likely that DOGE can maintain the current uptrend. Even so, the RSI may need to improve on its current performance before it is certain to increase further. However, DOGE has surpassed all other altcoins despite the market crash.
Social metrics spike and more
In its tweet on Nov. 12, LunarCrush reported DOGE topping the market performance among 3,973 altcoins. According to the crypto social information platform, the social volume of DOGE is 66,314. In terms of engagement on social networks, DOGE recorded 160.11 million.
The above data implies that the DOGE community has a tremendous influence on the price direction. At the same time, the coin is one of the most discussed on several social platforms. Thus, DOGE has found a way to excel on its own without the help of Bitcoin.
In addition, DOGE has a basis to maintain the bullish momentum. While not as high as Nov. 10, the positive sentiment is higher at 71,918, according to Santiment. As for the negative sentiment, the indicator is significantly lower at 47,082. This implies that a large number of investors in the market still maintain the expectation that DOGE will continue to rise.
Furthermore, the logical market cap HODL wave is up to 9.85 at press time. With this increase, it means that DOGE is getting more money flowing into its chain. In addition, long-term holders have recently engaged in using assets in dormant addresses.
However, DOGE whales do not seem to be swayed by the momentum as the percentage of whale supply remains only in the region of 40%.