- Dogecoin registered 17.68% gain in one week.
- Social media mentions in the last week drove the memecoin’s prices.
NEW DELHI (CoinChapter.com) — The meme coin, Dogecoin, once again highlighted the influence of social media on its prices, as the altcoin registered 17.68% growth in a week, going from an open price of $0.2041 on August 2 to closing August 8 at $0.2402. Moreover, considering weekly lows and highs, DOGE swung up by 46%.
As per a tweet from a Twitter-based analyst, RESEARCH 24/7, Dogecoin led the altcoins in social media signals last week. DOGE, created by software engineers Billy Markus and Jackson Palmer to make fun of cryptocurrencies, is now one of the most well-known members of the crypto club.
In the past, Dogecoin prices have often reacted to tweets from the billionaire entrepreneur, ‘DogeFather’ Elon Musk. Thus, given its recent rally, it seems the meme-coin continues to derive its fundamentals from social media.
Eh, What’s Up, Doge?
DOGE prices struggled to break above the May 19- July 20 descending trendline. However, as the crypto market started its upwards rally on July 21, DOGE prices started moving north as well. Although the altcoin registered four red candles last week, August 7’s staggering 28% jump helped DOGE end the weekend on a high.
DOGE prices have moved comfortably above the 200-Day (Yellow) Moving Average Trendline, which means the altcoin is bullish in the long-term range. Moreover, the 50-Day (Green) MA and 20-Day (Red) Exponential MA trendlines are forming a support confluence for the meme-coin at $0.2157.
Although the weekend started on a bang for Doge, the altcoin declined by 8.44% between open and close levels on August 8.
DOGE’s bull run ran into the resistance wall at $0.2731, which also supported the altcoin’s recovery rally post-May 19 market crash (May 30-June 20). However, the price level flipped into resistance from June 21, and prices are yet to breach above it.
If the altcoin breaches the immediate resistance, bulls will have a free run until the next resistance at $0.333.
If Dogecoin falls below the confluence support, the next support level is at $0.167.
Meanwhile, trend-based momentum oscillator MACD is giving strong bullish signals for Dogecoin. The MACD histogram’s bars have been above zero since July 21. The histogram plots the difference between the MACD line (difference between 12-Day and 26-Day EMA) and the MACD signal line (9-Day EMA of MACD).
Moreover, the relative strength index for the altcoin is neutral at 64.86.
Dogecoin is the top meme-coin by market cap, thanks to its growing social media popularity and backing from industry giants like Elon Musk. The altcoin enjoys an immense social media following, thanks to the popularity of memes.
All proceeds from the DOGE hot dog auction will go to the hunger relief organization Feeding America.
Memecoins are gaining popularity and are now actively trying to establish fundamentals to further their growth. For example, baby Doge, a spinoff of Dogecoin, announced a burn event of 1 quadrillion token ($2.2 million) on August 6. On a similar note, Shiba Inu, another Doge-inspired memecoin, announced plans to implement a burning procedure to reduce its supply.
The Shiba developers also announced the addition of two new trading pairs.
Although DOGE began as a joke, a social media savvy generation now considers the altcoin a serious investment option.
At the time of writing, DOGE was trading at $0.2554, up 6.34% on the day.