12/1/2022 | Business Today
Why did Dogecoin price rally over 25% in the past 7 days?
From our observations, we can say that Dogecoin is in a relatively safe place with limited downside and also, a limited upside for the time being.
Dogecoin – the memecoin with the largest market capitalization – has managed to recover strongly in the past 7 days. DOGE price has rallied over 25% as of writing – and even touched highs of up to 33% very recently before correctly slightly. The underlying strength in DOGE has been going on for a while ever since Elon Musk’s $44 billion takeover of the micro-blogging platform, Twitter – and taking it completely private. Now while the speculations around the integration of DOGE in Twitter services is still in the rumor phase – the excitement is palpable and it is evident from its price charts. Recent tweets from the Tesla founder seems to indicate that those speculations could be happening for real.
From our observations, we can say that Dogecoin is in a relatively safe place with limited downside and also, a limited upside for the time being. This is because technicals and a few metrics like the social dominance and hash rate indicate that Dogecoin price might have bottomed out, and hence the downside is pretty limited, unless there is another FTX-level incident in the market. On the other hand, positive indicators on the charts and metrics from the development activity to daily active addresses indicate that any rally would be met with some resistance.