Dogecoin (DOGE) saw one of the fastest bull runs in cryptocurrency market history, rising more than 1,100 percent in just two days when a Reddit group called „SatoshiStreetBets“ called on ordinary traders to buy the meme-based token.
So much doge, so much wow!
The frenzied trading catapulted the market valuation of Crypto Bank to around 9.5 billion dollars, making it the seventh largest cryptocurrency in the world by capitalization. Prices have soared so quickly that the „Dogecoin“ keyword started trending on Twitter and topped Google Trends on a weekly timeframe.
Even Binance, a cryptocurrency exchange with a global presence, became the 11th-highest daily search trend on Google Trends after listing the pairs DOGE / EUR and DOGE / TRY.
In mimicking the same hysteria sparked by Reddit group „/ r / WallStreetBets“, users on „/ r / SatoshiStreetBets“ advertised Dogecoin in an attempt to generate explosive profits for GameStop, BlackBerry, Bed Bath & Beyond, AMC and to copy other heavily shorted stocks.
Twitter users have also called on Tesla founder Elon Musk to tweet about Dogecoin to accelerate the surge.
Musk previously tweeted „Gamestonks,“ which helped GameStop shares rally more than 150 percent in one day. He has openly endorsed Dogecoin in many of his previous tweets, though it’s hard to tell if he was being sarcastic given the nature of DOGE as a joke token.
Will the crash follow again?
Dogecoin’s recent rally was reminiscent of a similar bull run last year, where a viral TikTik video drove the price up 35 percent in two days. It later fell more than 60 percent due to profit-taking among traders.
Technically, DOGE / USD is now pointing to a fractal repeat.
Dogecoin’s relative strength indicator, a momentum oscillator that measures the speed and change in an asset’s price movement, warned of severely overbought levels. That meant a deeper downward correction in upcoming sessions, making it riskier for traders to take new long positions near current highs.
Dogecoin is up more than 1,100 percent in just two days. Source: DOGEUSD on TradingView.com
DOGE / USD corrected roughly 20 percent from its intraday high of $ 0.038 prior to the opening of the European trading session. Volumes also fell, raising doubts about the continuation of the rally in upcoming sessions.
Independent market analyst Luke Martin comments on ongoing capital outflows from Dogecoin to neighboring altcoins , beginning with Ripple’s XRP ( How to Buy Ripple ), a controversial cryptocurrency that has been faced with allegations by the Securities and Exchange Commission of illegal securities sales.
„It pains me to say this …. it really does … but it looks like the hot ball of money that DOGE pumped has started moving in XRP. XRP is up 20% in the last 2 hours while the rest of the market is flat. „