- Dogecoin’s popularity skyrocketed during the bull rally.
- The last 24 hours were bearish as memecoin witnessed a slight correction.
Dogecoin [DOGE] experienced a comfortable bull rally last week as the coin’s price rose by double digits. Thanks to that, the popularity of the world’s largest memecoin has skyrocketed in the past few days.
But will that popularity be enough for DOGE to sustain the bullish momentum?
Decoding Dogecoin’s Bullish Rally
As per CoinMarketCapDogecoin bulls pushed hard last week. Memecoin’s price increased by more than 27% over the past seven days.
The recent bull rally has pushed more than 5 million DOGE addresses into profit, accounting for over 80% of the total number of DOGE addresses, according to IntoTheBlock’s data.
Meanwhile, Emperor Osmo, a popular cryptanalyst, recently posted one tweet reveals an interesting update. According to the tweet, DOGE’s popularity increased as the coin became #1 in terms of mindshare across memes.
AMBCrypto’s analysis of Santiment’s data also pointed to a similar development.
We found that Dogecoin’s social volume increased last week. Additionally, the coin’s weighted sentiment remained in the positive zone for the majority of days last week.
This clearly meant that bullish sentiment around DOGE was high as investors expected the coin’s price to rise further.
Source: Sentiment
This is the catch!
However, memecoin’s massive rise in popularity could not help it sustain the bull’s momentum. This was the case as memecoin’s price fell by more than 1% in the last 24 hours.
At the time of writing, Dogecoin was trading at $0.141 with a market capitalization of over $20 billion, making it the eighth largest crypto.
Therefore, AMBCrypto planned to take a closer look at the current state of the coin to better understand what to expect from it.
According to our analysis, DOGE’s MVRV ratio remained high, which can be considered a bullish signal. However, Dogecoin miners were not sure about the coin.
This was evident from the massive drop in the supply of miners which meant they sold DOGE when the price was rising as they expected the trend to change.
Source: Santimenbt
Our assessment of DOGE’s daily chart revealed that the coin was rejected at its resistance near $0.14428. A possible reason for this could be the increase in sales pressure.
Realistic or not, here it is DOGE market value in BTC terms
Dogecoin’s Money Flow Index (MFI) entered the overbought zone, which could have triggered a sell-off. However, MACD continued to show a bullish advantage in the market.
This may allow memecoin to go above the resistance in the coming days.
Source: TradingView