This week, the cryptocurrency market was able to observe an almost global increase, but the price of Dogecoin (DOGE) was propelled 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 of exceeding that of the Solana (SOL) and Cardano (ADA) blockchains.
Big week for Dogecoin (DOGE)
This week was good for all cryptocurrencies following a rise in Bitcoin (BTC), the result of a combination of favorable economic factors, in particular following the publication of positive quarterly results for most 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, which was never to be more than a simple joke. And yet, at the time of writing these lines, DOGE sits in 8th place in the ranking of cryptocurrencies in terms of market capitalization.
Indeed, where 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 settled in court, but was finally finalized this week.
Indeed, the DOGE is well known to be the billionaire’s favorite cryptocurrency, to the point that it is sometimes possible to use it as payment at Teslaa company of which Elon Musk is the CEO.
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A temporary increase?
The Dogecoin has thus benefited from a quite remarkable momentum, and also proves that its price remains highly correlated to various unpredictable external factors, which causes sudden buying waves. Also, when we take a look at the Relative Strength Index (RSI) indicator, we can see that the DOGE was largely overbought over the week.
DOGE price action, with the overbought area outlined above 70 on the lower portion of the screenshot
Although this does not necessarily bode for a drop in its price as sudden as its recent rise, this may at least portend a correction or less volatility short term of the latter.
Along with a general increase in trading volume on DOGE, we can also see a significant increase in the number of trades for whales.
Number of transactions on the DOGE with an amount greater than $100,000
Consequently, the market capitalization of DOGE has also increased considerably. Indeed, the latter just exceeded 8 billion dollars at the start of the week and more than doubled over the week, until reaching 19.8 billion dollars at its highest point on October 29. The capitalization of DOGE, however, continued to climb more than 17.5% over the past 24 hours.
Thus, the DOGE surpassed the market capitalization of Solana (SOL) and Cardano (ADA)which, again, places it in 8th place on the cryptocurrency podium.
👉 Read also – Twitter: Elon Musk dismisses CEO and CFO, Binance rallies his 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 write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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