This week, the cryptocurrency market was able to observe an almost global increase, but the price of Dogecoin (DOGE) was driven by the formalization of the purchase of Twitter by Elon Musk. Thus, in 7 days, the capitalization of the memecoin has more than doubled, to the point that it surpassed the Solana (SOL) and Cardano (ADA) blockchains.
Big week for Dogecoin (DOGE)
This week has been good for all cryptocurrencies after the rise of Bitcoin (BTC), as a result of a combination of favorable economic factors, especially after the publication of positive quarterly results for most of the major American companies. But despite this almost general increase, some cryptocurrencies still stand out.
This is the case of Dogecoin (DOGE), this cryptocurrency created in 2013, has never been more than a simple joke. And yet, at the time of writing these lines, DOGE is in 8th place in the ranking of cryptocurrencies in terms of market capitalization.
In fact, when BTC and Ether (ETH) gained 7.7% and 21.6% respectively, DOGE outperformed the rest of the market and Shows a dazzling increase of 111% over the same period.
Thus, the now famous cryptocurrency with the image of a Shiba Inu was able to benefit from the general momentum of the market, but also the purchase of the Twitter platform by Elon Muskan acquisition that could have been settled in court, but was finally finalized this week.
In fact, it is well known that the DOGE is the favorite cryptocurrency of the billionaire, to the point that it is sometimes possible use it as payment at Teslaa company of which Elon Musk is the CEO.
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Temporary increase?
The Dogecoin therefore benefited from a very significant momentum, and it also proves that its price is still highly correlated with various external factors that cannot be predicted, resulting in sudden buying waves. Also, when we take to look at the Relative Strength Index (RSI) indicator, we can see that the DOGE was mostly overbought during the week.
DOGE price action, with the overbought area outlined above 70 on the lower part of the screenshot
Although this does not necessarily cause its price to drop as suddenly as its recent rise, this could at least indicate a correction or less volatility the latter short-term.
In addition to a general increase in trading volume on DOGE, we can also see a significant increase in the number of trades for whales.
The number of transactions on the DOGE with an amount greater than $100,000
Consequently, DOGE’s market capitalization has also increased significantly. In fact, the latter just surpassed 8 billion dollars at the beginning of the week and more than doubled during the week, to reach 19.8 billion dollars at its highest point on October 29. DOGE’s capitalization, however, continued to climb more than 17.5% in the last 24 hours.
Therefore, the DOGE market capitalization surpassed Solana (SOL) and Cardano (ADA)which, again, it places 8 on the cryptocurrency podium.
👉 Read also – Twitter: Elon Musk breaks CEO and CEO, and Binance joins its cause
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Source: Into the Block
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I wrote articles for Cryptoast to help make blockchain more accessible to everyone. Surely cryptocurrencies will change the future very soon.
Maximilien Pru
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