Key Takeaways:
- Elon Musk switches Twitter logo to doge meme.
- Dogecoin pumps 30% in 24 hours, but a correction is likely.
- Other canine meme coins join the hype with double-digit gains.
YEREVAN (CoinChapter.com) – The Dogecoin community has admired eccentric multi-billionaire Elon Musk as if he’s the only proponent they would ever need, and the ‘Dogefather’ did not disappoint.
After switching the Twitter logo with the ‘much wow’ meme, Musk pumped Dogecoin by 30% since Apr 3, and DOGE knocked at the $0.1 resistance on April 4. Here’s a short recap of what happened.
April Fool’s Joke Pumps DOGE
Dogecoin has a habit of jumping up and down at the slightest hint of affection from Musk, so the latest joke did not go unnoticed. The Dogefather tweeted his old conversation with @WSBChairman, where the latter gave Musk the idea of buying Twitter and switching the Twitter logo to the doge meme.
A few more joke tweets followed, and the Dogecoin community lost no time to pump the coin. However, will the rally continue?
Also read: Does Dogecoin Army Really Need Elon Musk as Dogefather?
Dogecoin Reversal Ahead?
Despite the 30% pump, Dogecoin is not likely to break the $0.1 resistance. The altcoin has not been able to break above the said level with any confidence since 2021. The trading volumes spiked on April 3, but April 4 level is unlikely to match, showing a slowdown in traders’ eagerness to bet on Doge.
The likely outcome for DOGE in the next 24 hours is a correction back to $0.088, a resistance-turned-support line significant since May 2022.
Moreover, the relative strength index (RSI: purple graph at the bottom) crossed over to the ‘overbought’ zone, charting at over 70. In short, traders typically take the RSI rise above the ‘normal’ 30-70 range as a SELL cue. If they do, the price would subsequently drop to the mentioned target.
Also read: Elon Musk pumps Dogecoin (DOGE) after Super Bowl discussion with Rupert Murdoch.
Dogecoin Litter Joins Hype
Dogecoin was not the only canine meme coin to benefit from the Musk-led hype. Floki Inu and BabyDoge also tweeted in support of the logo swap and jumped 16% and 12%, respectively.
Meanwhile, the mentioned meme coins also showed similar signs of an upcoming reversal, as the trading volumes did not match the hype, showing insufficient weight behind the uptrend.
