The cryptocoin has outperformed Bitcoin by as much as 24 times, which has gained less than 7 per cent in the last one week. Similarly, it has dwarfed the 18 per cent rally of Ethereum by at least 9 times during the given period.
Dogecoin zoomed more than 30 per cent to Rs $0.1527 levels from $0.114 mark in the last 24 hours. This spike in Dogecoin has pushed it to eight spots in terms of market capitalization with a total valuations over $20.5 billion.
Even though the trading volumes remained healthy, the data from Coinmarketcap suggested Dogecoins worth over $7.22 billion exchanged hands in the last 24 hours, rising 27 per cent during the period under review.
Dogecoin has been the best performing crypto asset in the last one week, delivering 4.5 times higher returns than the second best performer Mina and Shiba Inu.
Dogecoin’s rally comes as Musk completed his $44 billion acquisition of Twitter. The Tesla CEO has expressed his support of the memecoin in the past via tweets like ‘Who let the Doge out’ and his embrace of the nickname, ‘The Dogefather.’
Shivam Thakral, CEO, BuyUcoin, said the most popular memecoin witnessed a mega rally since the news of Elon Musk’s Twitter deal came out in the public.
“Elon has been vocal about his support for DOGE and with his control on Twitter, investors are anticipating more use cases for DOGE in the Twitter ecosystem,” he added.
Also, the analysts said that the traditional markets are showing early signs of recovery with central banks signaling relaxed monetary policies to balance the economic equilibrium.
The buying activity across traditional and digital assets is expected to continue if macroeconomic factors remain favorable.
“The recent takeover of Twitter by Elon Musk has brought attention to the potential broader use cases of Crypto as new age fintech giants continue to leverage blockchain and crypto technology to expand their services and products,” said CoinDCX.
“Musk and Twitter are creating an internal team to focus on ways that blockchain and crypto could be helpful to Social Media with features such as Twitter Blue subscription, Tipping and other Fintech integrations in the Payments space using Crypto” it added.
Dogecoin is an entirely transparent public blockchain; all the transactions can be theoretically mapped out to individual addresses which could be used for taxation and other contingent liabilities based on the transactions linked to Twitter IDs.
Reading the technical charts, Giottus Crypto Exchange said amongst the few factors challenging DOGE from going up further is a confluence of long-term macro resistances.
“There’s a long term trendline stretching from 2021 that’s given DOGE a pause right now, in combination with the .618 retracement of the dip from its 2022 high. Its RSI has also finally entered decisively overbought territory,” it added.
If DOGE drops to $0.112, bullish investors can use the opportunity to buy more, Giottus said. “On the other hand, if DOGE claims and holds the $0.158 level, further upside will be expected given that it will signal a clear market structure change on the daily time frame – the most bullish signal of all.”
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)