Home Altcoins News Dogecoin’s Meteoric Rise: Social Sentiment increases 600% in Single Day as DOGE Surpasses 10 Cents – But Traders Beware!

Dogecoin’s Meteoric Rise: Social Sentiment increases 600% in Single Day as DOGE Surpasses 10 Cents – But Traders Beware!

Dogecoin's Meteoric Rise

Amidst the flurry of activity in the cryptocurrency market, Dogecoin, the quirky meme-based digital currency, has once again captured the spotlight with a remarkable surge in both its price and social sentiment.

The latest data from LunarCrush, a social analytics firm, has revealed an astonishing 600% spike in Dogecoin’s “social dominance score” within a mere 24-hour period. This metric essentially measures the cryptocurrency’s share of voice across various social media platforms, indicating a significant uptick in community engagement and discussion surrounding Dogecoin.

This surge in social sentiment comes hot on the heels of a broader bullish trend in the cryptocurrency market, fueled by Bitcoin’s impressive rally above the $64,000 mark. As positive sentiment pervades the crypto landscape, Dogecoin has managed to breach the psychologically significant threshold of 10 cents per token.

In terms of market capitalization, Dogecoin has swiftly reclaimed its position among the top ten cryptocurrencies, surpassing rivals like Avalanche (AVAX). Currently boasting a market cap of $16.4 billion, Dogecoin stands firm as the 10th largest cryptocurrency by market capitalization.

However, behind the euphoria of Dogecoin’s ascent lies a cautionary tale for traders. Technical indicators, such as the Relative Strength Index (RSI), are flashing warning signs of potential overextension in Dogecoin’s market price. With an RSI value of 73.4071, Dogecoin finds itself firmly entrenched in the overbought territory, suggesting the possibility of a looming correction.

The RSI, a popular momentum oscillator, measures the velocity and magnitude of price movements on a scale of 0 to 100. Values above 70 on the RSI typically indicate an asset’s overbought condition, often signaling a potential reversal or sell-off in the near future.

Furthermore, data from CoinGlass highlights a surge in liquidated positions, particularly among traders betting against Dogecoin’s rise. A staggering $39.86 million in liquidations, with $30.52 million originating from short positions, underscores the heightened volatility and speculative fervor surrounding Dogecoin.

Delving deeper into blockchain analytics from IntoTheBlock, we observe a flurry of activity surrounding Dogecoin, with an 86% surge in new wallet creations. Moreover, the number of active wallet addresses associated with Dogecoin has spiked by 37%, reflecting a surge in transactional activity on the network.

At the time of writing, Dogecoin is trading at $0.12, marking an impressive 30.22% increase over the past 24 hours. As traders navigate the choppy waters of cryptocurrency markets, the meteoric rise of Dogecoin serves as a testament to the enduring power of social sentiment in driving price action. However, with warning signs of potential overvaluation looming large, investors are advised to tread cautiously and remain vigilant amidst the excitement surrounding Dogecoin’s ascent.

As the frenzy surrounding Dogecoin intensifies, analysts are closely monitoring key developments to gauge the sustainability of its upward trajectory. With Elon Musk, the famed CEO of Tesla and SpaceX, continuing to champion Dogecoin through his social media presence, the cryptocurrency’s future remains shrouded in uncertainty.

Moreover, the broader regulatory landscape looms large over the cryptocurrency market, with policymakers worldwide grappling with the challenges posed by digital assets. Any regulatory crackdown or unfavorable legislation could potentially dampen investor sentiment and trigger a sharp sell-off in Dogecoin and other cryptocurrencies.

In conclusion, while Dogecoin’s remarkable ascent has captured the imagination of traders and enthusiasts alike, the inherent risks associated with speculative assets cannot be overstated. As the saying goes, “What goes up, must come down.” Therefore, investors are urged to exercise caution, conduct thorough research, and diversify their portfolios prudently to mitigate potential losses in this volatile market environment.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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