VOT Research Desk
Nov 2
Market Analytics and Considerations
Dogecoin (DOGE) has risen significantly over its technically significant 200-day moving average during the past week thanks to a rally that was sparked by Twitter.
DOGE rose from below $0.06 a week ago to above $0.15 on Tuesday as Elon Musk closed his purchase of Twitter and hoped for some kind of integration with the popular social media platform.
The ratio between DOGE’s going market price and the 200-day simple moving average (SMA), commonly known as the Mayer Multiple, was 1. 83 as of Tuesday, as according figures from charting site TradingView, the highest point since June 2021.It should come as no surprise that among the top 20 cryptocurrencies by market capitalization, Dogecoin has the highest Mayer Multiple.
Last week, rumors of a connection to Twitter caused Dogecoin to surge by more than 100%.The surge’s chart is important because it shows that it broke above the 200-day moving average and past peaks.
Omkar Godbole Wed, November 2, 2022 at 5:56 p.m. The Dogecoin (DOGE) price surge over the past week, which was sparked by Twitter, has taken the cryptocurrency well above its technically significant 200-day moving average.
DOGE rose from below $0.06 a week ago to above $0.15 on Tuesday as Elon Musk closed his purchase of Twitter and hoped for some kind of integration with the popular social media platform.
According to data provided by charting platform TradingView, as of Tuesday, the ratio between DOGE’s going market price and the 200-day (SMA), also known as the stood at 1.83, the tallest level from June 2021.
It should come as no surprise that among the top 20 cryptocurrencies by market capitalization, Dogecoin has the highest Mayer Multiple.
The 200-day simple moving average (SMA), for DOGE was 1, up from below $0.06 a week earlier ” Rumors about Twitter integration caused Dogecoin’s price to increase by more than 100% last week. Fairlead Strategies’ founder and managing partner, Katie Stockton, stated in a letter to clients: On its chart, the surge is significant due to the burst just above 200-day MA and previous peaks. Above the 200-day SMA and the Ichimoku cloud, Dogecoin has entered bullish territory.
DOGE has surged past its 200-day SMA, Ichimokou cloud (blue shaded area), and Aug. 16 high of $0.0917, transforming resistance into support, as depicted on the chart. Most people believe that crossings above or below the cloud are early indications of a bullish or bearish trend change.
Stockton says that if the bulls are able to establish a new foundation above the $0.0917 horizontal line on the chart above, which was once resistance but has since become support, DOGE’s breakout could have long-term effects.
However, Stockton warns that attempting to follow the rally right now could be risky due to the possibility of a “sell the news” event. Late last week, Musk completed his $44 billion acquisition of Twitter. As a result, traders who purchased DOGE prior to that event may realize profits, resulting in a price decline.
This may already be taking place, as DOGE is down 8.5% to $0.129 on Wednesday morning, down nearly 17% from its Tuesday high.
Additionally, the stochastic oscillator has turned lower from above-80 or overbought levels, suggesting the possibility of a bull breather or brief price pullback, despite the fact that the MACD histogram, which is located below the price chart, exhibits strong upward momentum. The MACD and stochastic are utilized by chart analysts to determine overbought and oversold levels, as well as to assess trend strength and changes.
