From Memecoin to Top Altcoin, Will Dogecoin Continue Its Price Rally?

Dogecoin, the community’s favorite coin, is already stealing the April headlines. DOGE Price has not experienced a significant price drop in the last 24 hours. Following a 300% increase, its fall from $0.45 to $0.24 was calculated and gradual. 

The chart above shows its distinct separation from the rest of the market, which is unusual for a coin that is rallying based on speculation rather than fundamentals.

According to data from InTheBlock, addresses buying between $0.25 and $0.31 are currently out of pocket, as 64k addresses between $0.305 and $0.310 purchased a total of 16 billion DOGE. These addresses were out of money at the time, which may indicate a degree of resistance for the current price action.

The network hash rate has increased over time, increasing from 179 TH/s on October 19, 2020 to 293 TH/s on April 15, 2021, indicating increased network stability and security. 

DOGE Price Market Sentiments

When analysing Dogecoin’s actual price behaviour, however, fundamentals take a hit as seen in the chart below.

DOGE experienced a proper correction period, where the asset fell to the 0.50 Fibonacci line, which is normally considered a respectable buy-range for any asset, after increasing by nearly 1100 percent. 

The asset continued to stabilise in this range until the beginning of April, establishing a healthy support range between $0.0473 and $0.0568. (highlighted in the chart).Any asset that follows market fundamentals now has a maximum gain of 2x from the previous high and may consolidate before rising again. 

$0.14 would have been a generous goal. Dogecoin, on the other hand, defied the rules and exceeded the predicted top by another 167 percent, as shown by the price action on the right-hand side.

Fundamentals do not explain the present price chart, but the community does not care as capital is flowing into their pockets.

Since the narrative has been drawn that Dogecoin may be rallying more on investor sentiment than anything else, Twitter is currently bursting with Dogecoiners banding together to drive the meme-token on April 20th, or 4/20, as they speak.

Over the last day, dogecoin 4/20 has gained a lot of momentum, as shown by the Lunar Crush numbers.

Dogecoin currently has 931% social engagement and 536% social domination. Given that Elon Musk hasn’t tweeted anything about Dogecoin in the last week, the reaction to the cryptocurrency has surpassed all expectations.