Dogecoin (DOGE), a popular cryptocurrency with a dog theme, recently saw a 4% increase in price shortly after a tweet from Elon Musk, the CEO of Tesla. Musk has shown support for DOGE on several occasions through his Twitter account, frequently sharing memes and comments about the cryptocurrency. His tweets have been known to cause significant movements in the market, with DOGE often experiencing double-digit percentage surges following his endorsements.
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Dogecoin rises 3% with Elon Musk's tweets. Musk’s Tweet Causes Another Dogecoin Surge, But Will It Be Short-Lived?
Despite a temporary price increase after Elon Musk's tweet, the value of DOGE still remains significantly lower than its July high of $0.07518. The cryptocurrency rose from $0.069 to $0.072 at its peak, but has since lost some of its gains. As of now, DOGE is trading around $0.070, specifically at $0.0687 as of writing. Despite this, DOGE has seen a 3% increase in the 24-hour timeframe. Dogecoin rises 3% with Elon Musk's tweets.
DOGE has shown positive price movements recently, despite being range-bound for the past two weeks. It has managed to maintain above its 200-day Moving Average (MA), which is a positive sign for the continuation of bullish momentum. The average directional movement index (ADX) indicator also suggests that DOGE is gaining strength and may attempt to breach and regain its July high. The Squeeze Momentum Indicator further supports this, indicating that the cryptocurrency is entering another potential uptrend phase. These factors combined could help DOGE regain the $0.01 mark it reached in April.
However, DOGE may face challenges in maintaining its uptrend due to low trading volume. It is also expected to encounter significant resistance in the near term. If DOGE can sustain its uptrend, it will likely face challenges from the 50-day Moving Average (MA) currently at $0.07481. Furthermore, DOGE must overcome a resistance wall at $0.0752 to regain its July high.
DOGE’s market capitalization is $9.83 billion, with a circulating supply of tokens. Its fully diluted market capitalization is also $9.83 billion, according to Token Terminal data.
However, DOGE’s price-to-fully-diluted ratio (P/F ratio) is currently at an extremely high level of 16,006.25x, indicating that the cryptocurrency is trading at a premium relative to its fully diluted market capitalization. The P/F ratio has increased by 226.7% over the past 24 hours, suggesting that there may be increased demand for DOGE in the market.
In conclusion, while DOGE’s recent surge in price can be attributed to Musk’s tweet, it remains to be seen whether it will continue to experience significant price movements in response to social media mentions and other media attention.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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