Has Dogecoin’s bulls outlasted bears' challenge?

Highlights

  • Musk’s one tweet stating that Tesla will be accepting DOGE as a mode of payment for merchandise catapulted the meme-based crypto out of its bearish phase.
  • On 14 January, DOGE saw a rally by 16.31% at the time of writing.
  • On 14 January, DOGE was trading at US$0.197249 with a trading volume of US$4,193,107,362.

After weeks of staying in the bearish phase, Dogecoin managed to register a mini rally after Tesla CEO Elon Musk tweeted that his company would accept Dogecoin as payment for merchandise on a test basis. Doge’s bearish phase was expected to run for some more time, but Musk’s tweet changed it all.

Tesla is world famous for its self-driving electric vehicles; besides it also sells merchandise, mini models of its cars, and others.

Following Musk’s tweet, the Doge’s market indicators turned bullish with the investors flocking on to the meme-based crypto. Market observers are expecting that the current rally will pull back Doge to the top 10 cryptocurrencies list.

On 14 January, DOGE was trading 16.31% higher its value at the time of writing, with a huge volume spike of close to 200%. Musk is considered as one of the major market influencers in the crypto world who has been responsible for the major fluctuations in the prices. In 2021 alone, Musk’s various tweets on the Dogecoin have helped the coin surge almost 2000%.

Also read: Is UK’s CBDC as good as shelved?

A welcome revival

This rally comes in at a time when DOGE was going through a bearish phase. This rally should help the 11th ranked token gain some ground. Doge before this had fallen 26.45% in the last 90 days.

But the latest rally has changed its (coin’s) dynamics again. Suddenly, the market for DOGE has turned bullish, with many experts suggesting that this rally, if persists for a good period, could see DOGE touch its new all-time high.

In fact, a close look at the RSI (relative strength index) indicates how the worm arrow has shot up in the past 24 hours. Before the tweet, RSI of DOGE was trailing a somber 28.78, but following the tweet it has shot up unlike what we have seen before. This clearly indicates that a bullish run has started, which has bottomed out bears for now. The last time it moved above the 50 mark was in October and at that time it had only reached 56.49. This is instrumental in DOGE regaining grounds and could well stay in that zone for a while.

Even the Moving Average Convergence Divergence (MACD) showed that the signal line, represented by the red histogram, is well below the trend line (in blue) indicating a price rise. This is evident even with the 24-hour price rise. On 13 January, when the market closed, DOGE was prices at US$0.172, but on 14 January, Doge was trading at US$0.197249 with a trading volume of US$4,193,107,362.

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DOGE’s Moving Averages, Oscillators, and Pivots indicate that it is one of the hottest cryptos at the moment, indicating that bulls have outlasted the challenge of bears and moved well in command. While the 50 EMA, 100 EMA (exponential moving averages) indicate a strong bullish sentiment, gradually withering off in by the 200 EMA. After 200 EMA, it is anticipated that market will see the price correction with the prices getting stable.

How long will the bulls last?

Experts are predicting that it will take some doing for the bears to stop the current tide. Some sections believe that with the overall crypto market recovering, DOGE could touch its all-time mark of US$0.74, if the rally continues.

Though it would be difficult to expect that the coin would touch its all-time high with a single rally, but it would be realistic to think that DOGE could inspire other meme-based coins to have a good run in the market in the coming days. 

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