Dogecoin Could Rally Further After Elon Musk-Inspired Rally, Says an Analyst – But There’s a Catch

dog coin doge/usd Shares skyrocketed 32% last week thanks to a boost from Twitter CEO Elon Musk, that had changed social media platform icon A bird’s for the DOGE meme.

And according to Sentiment, the cryptocurrency has even more potential after last week’s rally.

in a blog PostBrian Quinlivan, director of marketing at Sentiment, said that DOGE’s market-cap-to-achieved value has been below the “danger zone” over the past 30 days, suggesting that the price of meme coin could still rise.

“As for the average trading return, we can see that the 30-day MVRV is at +11%. Typically, when altcoins hit +20% or more, this is a ‘danger zone’. However, given that it did not move significantly higher even with the massive price increase induced by Elon, there may still be some additional cushion for further price increases,” Quinlivan said.

However, Quinlivan also cautioned that Dogecoin’s price action should not inspire confidence even after last week’s surge.

read this also, Dogecoin Leaps Over Elon Musk’s Reported Twitter Payment Plan: Why DOGE Supporters Are Excited

“It’s hard to get too excited that we’re suddenly seeing a little [of a] The correlation with the ‘lower high’ also broke in the hours preceding yesterday’s pump. A ‘higher high’ would be a more solid signal that a bigger rally is about to start,” he added.

Quinlivan further cautioned that Meme Coin could reach a local top, citing spikes in three metrics: active addresses and circulation of DOGE, trading and transaction volume, and whale transactions.

“When these three metrics move together during a time when the asset is going on a different upswing independently of the rest of the market, it is a pretty solid bet that a local top is almost always forming, and its Taking advantage of you is a wise decision,” he said.

Within 30 minutes of the musk-inspired DOGE rally, a pseudonymous crypto trader, “Tree of Alpha”, managed to make over $1 million.

At the time of writing, Dogecoin was trading at $0.08314, up 8% over the past seven days.

Read further, Elon Musk does it again! Backs Dogecoin, Says He Will Continue Buying Meme Coin

Photo: shutterstock

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