Dogecoin (DOGE) has experienced a resurgence in bullish momentum, partially driven by a recent tweet from Elon Musk. The Tesla CEO’s support for the memecoin has sparked renewed optimism among investors.
After a week of declining prices, DOGE has shown signs of recovery. The token’s value has increased by more than 3% in the past 24 hours, trading at $0.09597 at the time of writing.
Elon Musk’s tweet, which simply stated “Department of Government Efficiency,” or D.O.G.E., has historically had a significant impact on DOGE’s price. This time was no different.
An analysis of Santiment’s data revealed a surge in Dogecoin’s social volume and a positive shift in its weighted sentiment following Musk’s tweet. This suggests that bullish sentiment around the token has increased.
Crypto analyst Crypto Tony emphasized the importance of DOGE reclaiming $0.11 for a sustained recovery. To assess the memecoin’s chances of achieving this, we delved into its on-chain data.
Our analysis found that Dogecoin’s MVRV ratio and percentage of supply in profit have improved in recent days, indicating bullish signals. However, the NVT ratio, which measures network value to transaction volume, has shown an upward trend, suggesting potential overvaluation and a possible price correction.
Despite the mixed on-chain indicators, Dogecoin’s fear and greed index remains neutral, suggesting that the market could move in either direction. To reclaim $0.11, DOGE must first break above $0.10. This level is crucial as it could lead to a significant increase in liquidity and potentially trigger short-term price corrections.
If DOGE fails to sustain the bullish momentum and the bears take control, the token could plummet to $0.088. However, with Elon Musk’s continued support and positive market sentiment, Dogecoin has the potential to continue its upward trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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