Is DOGE on the way to becoming the most profitable asset?
The latest performance of DOGE has been a great surprise for investors. This is because it successfully broke via the levels of resistance that got previously mentioned. Now DOGE is on the way to breaking even powerful barriers. DOGE has been getting close to the Exponential Moving Average of 50 days. It showed the prospect to break via it as the trading volume witnessed a huge spike on the trading week’s first day.
There is a major reason behind such a powerful rise of meme coins such as DOGE and SHIB. It is the urge of investors to gain exposure to one of the riskiest options on the crypto market. Also not chase stable assets such as Ether that are under big institutional pressure.
In the past nine days, DOGE gained nearly 50 % of its value. It thus became the second most profitable digital asset in the leading 100 of the crypto market after 100 % weekly growth of STEPN.
Will DOGE be able to hold this rally?
The only indicator that may be giving us some hint of the rest of the power of such a rally is the descending volume profile. It shows that this rally is slowly fading. As per the indicator, we may be seeing one reversal in the next few days or upcoming weeks if new funds are not flowing into this asset.
Other indicators of this trend such as the Relative Strength Index suggests that this crypto entered an uptrend short-term. It did not yet face any pressure of selling on its way upwards. On the timeframe of the intraday chart, this meme coin broke via each resistance on the chart.
It is now facing the EMA resistance of the 50-day that was touched only once in the month of May. DOGE has been trading at nearly $0.07 at press time.
The current scenario involving DOGE
DOGE has been going through a sharp rise and much interest in the activities of whales. The largest holders of crypto coins are named whales. They hold more than $1 million priced crypto in their wallets. It is one industry term for any users holding huge crypto amounts and not selling them in future profits hopes.
Because of the renewed interest in whale’s interest, this largest meme token was capable of making its way back into the top digital currencies again. The activities of these large crypto holders sometimes indicate how the broader retail market may be behaving in the near future. Most of such transactions indicate a bias to acquire DOGE rather than sell it. Currently, DOGE commands a market cap that is below $19 billion.
Yet its jump in the table of rankings can be attributed to the 15% fall in prices of Avalanche which is not holding at the table’s 12th position. The total transactions having a value of a minimum of $100000 increased to 2440 on the transactions of whales along with institutional players.
DOGE created a buzz among crypto investors from the time of the declaration of Twitter’s takeover by Elon Musk. He is known as the DOGE father as he is an avid follower of this meme coin. It is nearly 80% below its all-time price high of $0.6848 which hit almost one year ago. Also, the deflationary tokens are having many DOGE tokens almost 132.67 in their supply now without any capping.
Conclusion
DOGE is gaining back all old glory. It is because of Elon Musk and bug whales backing it on one side. Dogecoin Foundation created the RadioDoge protocol. It aims to make use of low-cost radio tech that aligns with Starlink satellites. It lets users perform transactions without making use of the internet on the other side. Experts in the crypto market suggest that the increase in the activity of whales hints toward a strong prospective rise in DOGE’s prices. Yet its dependence on the movement of Bitcoin and the interest of investors in the riskier asset is very high. It remains a very volatile asset. It is linked to activities that are done by whales and influencers. Investors need to understand the higher risks involved in comparison to Bitcoin before they invest more in this crypto.
