The crypto market has been riding on a wave of volatility with the scales tipping more onto the bearish side. One can always trust a dog(e) to make someone’s day (or in this case, Doge HODLers’). The larger market, on the back of Bitcoin’s 8% losses seemed to take a bearish turn, with major altcoins noting red on their daily and weekly time frames. Dogecoin yet again saw a surprise pump.
On 14 September, Elon Musk tweeted, “Tesla will make some merch buyable with Doge and see how it goes.“ The tech billionaire’s tweet comes after weeks of Dogecoin holders asking Tesla to accept the token as a payment method.
DOGE saw an over 35% rally in 24-hour in response to the news as social volumes for the meme token significantly rose. Dogecoin price pumps coincide with social volume peaks, more often than not.
This is not the first time Musk’s Tweets have set crypto Twitter on fire sending Dogecoin’s price ‘to the moon.’ In May, this year, he set up a poll on Twitter asking his followers if Tesla should accept DOGE and 78.2% said yes. DOGE saw a price pump then too. This time, however, DOGE soon fell by 10%. So, the question is- where will Musk’s new stint take Dogecoin this time?
It’s good while it lasts
Dogecoin, after the early December fall, slipped under the $0.195 support level and still traded at the lower $0.1807 price level. At the time of writing, DOGE was almost 75% away from its all-time high price of $0.74.
The recent social attention got DOGE an initial pump backed by retail euphoria seen in the coin’s $7.3 billion volumes, an over 600% rise from a day prior. Development activity, too saw a healthy growth picking up from the November end lows.
Source: Sanbase
Dogecoin’s active addresses and transactions volumes also picked up. New addresses saw a 7-Day change of +51.57%, while active addresses jumped by +41.82% over the same period. However, the number of large transactions (in USD) was heading towards the lower level presenting fewer big players in the scene.
That being said, on a more price-centric approach, DOGE’s long-term downtrend and consolidation since May still continued. At the time of writing too, DOGE’s rally had gotten weaker. So, with the price cooling off, will another Dogecoin dry spell follow?
Still not the DOG(E)’s day
While in the short term the new and active address growth has been impressive, the address growth has considerably slowed down. The 30-day high of total address with balance was 4.3 million addresses on 14 December. The rate of growth in the second half of the year seems to be slower than in the first half of the year.
Notably, retail euphoria and social volume pumps have managed to sail DOGE’s boat but the price pumps have been too weak to last in the past. Further, with mushrooming DOGE-killers like Floki Pup (FLOKIPUP) noting 45.39% daily gains, Floki Inu noting over 10% gains, Dogecoin 2.0 rising by 28.04%, over the last 24-hours, the market could be looking at high risk, higher ROI options.
While Dogecoin still remains the king of meme-tokens, with the larger market cap in that category, it’ll have to establish itself above the $0.195 support for a true rally to begin.