DOGE price strength combined with the complementary volume highlights the continued fascination in the digital token, portending further price gains in the days ahead.
The frenzied rise in the cryptocurrency complex, particularly altcoins like Dogecoin, has captivated even the most prominent media publications, generating a buzz that is normally saved for other assets such as stocks markets, and commodities.
One of the beneficiaries of the chase for the next DOGE high-yielding cryptocurrency is the lesser-known digital assets, such as Digibyte DGB and SafeMoon. For example, SafeMoon's price has traveled 20,000% since its launch in March, claiming a market capitalization of nearly $3.7 billion and prompting small investors to hold hopes of it reaching a price of $0.01.
The fear of missing out has created an army of price speculators living in internet forums with no regard for the underlying fundamentals or if the assets will ever price gain widespread acceptance. In contrast and with the usual spite, the institutional community investors are quick to squash the enthusiasm with hyper-speculation that is doomed to create far more big losers than gainers.
Some of the origins of the mania include individuals like Elon Musk, perhaps the biggest Dogecoin fan, as well as Gene Simmons, Mark Cuban, and Snoop Dogg to name a few. Their support has been fundamental to the rise of Dogecoin, and as a result, lesser-known cryptocurrencies.
Mike Novogratz, the founder of Galaxy Digital, was a bit more romantic about the Dogecoin price rally while speaking on CNBC; “when you think about the full spirit of what this crypto revolution is, there’s something pure in what Dogecoin price has done.” Novogratz did admit that he worries that once the enthusiasm fades, there are no developers or institutions interested in the ecosystem.
Amidst the celebrity and media attention of Dogecoin, there is a genuine revolution in digital assets, but there is no doubt the future is not transparent for all. As US regulators clarify their oversight regulations and authorities introduce taxation policies, the end will become more apparent, thereby solidifying the fortunes of many altcoins and relegating some to fad status.
A recent Dogecoin price strength would ignite consecutive days of 30%+ gains, and that was the case on Tuesday and Wednesday at the intra-day highs. Until then, Dogecoin had rallied almost methodically, with average price gains and minor daily declines, but never consecutively.
The near test of the 138.2% extension yesterday was a milestone for the DOGE rally and may have marked a short-term high for DOGE price. However, as is the case with other cryptocurrencies, the magnet effect of the psychologically important $1.00 may be enough to catapult Dogecoin higher with a possible test of the 161.8% extension of the April decline at $1.014.
As a minor point, take note of the value of monitoring daily Dogecoin price action. On April 23, Dogecoin's price closed with a bullish candlestick pattern that raised the odds that correction was complete. The next day Dogecoin price triggered a new buy signal when it traded above the hammer high, leading to a 170% price gain for the attentive speculator.
The daily Relative Strength Index is flashing a bearish momentum divergence, a condition that emerges when the RSI does not print a new momentum high with the price. It could be a signal of a pending Dogecoin price correction, but it should not be overstated.
Nevertheless, price speculators should focus their attention on the April 16 high at $0.470 as a bonafide support level. A failure to hold will severely undermine the race for DOGE price to strike $1.00.
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