Traders should definitely keep an eye on Dogecoin (DOGE) as the popular dog meme coin hints at a 30% rally in the coming days.
- DOGE hints at 30% upside in coming days
- Dogecoin overtakes Polkadot by a huge difference of around $576.235 million
- DOGE price surges 2.25%
As the second largest proof-of-work blockchain network and 10th The largest cryptocurrency by market cap, DOGE seems unstoppable at this point. Dogecoin is expected to overtake Polkadot since Sept. 18, with a demarcation line of around $576.235 million.
according to Coin market value, DOGE is up 2.25% or trades at $0.05813 at press time. The recent fall in August prompted many traders to buy DOGE at bargain prices.
Bulls outpace bears with a 30% rally
Looking at the 8-hour chart, the Fibonacci Retracement tool shows the August high at around $0.092 and the recent low at $0.054, indicating a 63.4% retracement at the $0.08 level.
If on-chain metrics are accurate, bears could be hit hard by a 30% price rally. What’s more, the 4-hour chart is also showing mild signs of a bullish divergence, which means Smart Money is penetrating the market.
The sudden spike in DOGE is likely due to the increased trading volume over the past few days. The trading volume of meme coins is expected to increase from 202.16 million to 344.5 million. One of the reasons for the growth of DOGE can be attributed to the increased trading volume of the meme token over the past few days.
As of press time, sales have grown from 202.16 million to 263.32 million. Not only has transaction volume grown significantly, but active wallet addresses have also increased. Dynamic wallet addresses increased from 113k on September 15th to 120k on September 18th.
Dogecoin has also picked up speed, which means an increase in buying and selling activity.
DOGE is also bound to attract more miners, especially as its hash rate increased by 4.86% in the past week, which demonstrates the robustness and security of the Dogecoin blockchain.
Dogecoin social metrics drop
On the other hand, DOGE’s social media metrics plummeted. August wasn’t a good month, with DOGE’s social mentions down 30.02% and social engagement down -39.82%. A drop in social media metrics could negatively impact DOGE prices.
Another bad news is that whales’ interest in DOGE appears to be tapering off in August, with the number of wallets down 13.04% over the past 30 days.
Polkadot has also shown some volatility in terms of volatility and social media metrics, which may be the main reason why traders seem to have been avoiding the coin.
Overall, traders are said to be cautious as meme tokens are known for their extreme volatility. Even the price of DOGE can change abruptly with any new update or even some announcements from Elon Musk.
DOGE total market cap at $7.7 billion on the daily chart | Source: TradingView.com Featured image from Reuters, Chart: TradingView.com (The analysis represents the author's personal views and should not be construed as investment advice).