Dogecoin is a top contender for top gainers as the bulls are rallying the asset. Its been on the uptrend following Friday’s price actions that saw it dip to a low of $0.12 and lose over 7%. The last two days of the previous week saw the asset recover all lost levels. For example, it gained over 4% and closed above $0.138. Sunday brought almost 5% gains.
The current day sees the coin continue the upticks. It had notable declines at the start of the session, retracing to a low of $0.140 but rebounding. DOGE saw a spike in buying pressure that resulted in a massive increase, pushing price to a level it is revisiting for the first time since July.
Dogecoin broke above the $0.15 barrier and peaked at $0.16 a few minutes ago. What caused the surge?
Traders Long the United States Election
The crypto market clearly has a favorite to win the election and is positive of a good result in the end. As the polls draw nearer, the market will see significant price increases across several cryptocurrencies.
Dogecoin is one of the top gainers from the election proceeding for more reasons than one. The first is that a proponent is at the forefront of the ongoing campaigns. Elon musk mentions the memecoin’s ticker during the Donald Trump in New York.
While the mention of the letter may be construed as another acronym, the doge daddy caused a massive buying frenzy, resulting in the ongoing uptrend. Other traders believe that the ongoing campaign will deliver more for the altcoin if polls go as expected. They are stocking up in anticipation.
This is not the first time Elon Musk has made such a statement. Amidst the ongoing trend, fears of a massive decline are increasing.
Will Dogecoin Dip?
It is worth noting that fundamentals are the main driver behind the most recent surge. This catalyst fades with time, and so do its effects. If this happens, the uptrend may halt.
However, this case is different. While Elon Musk’s statement is the main driver, the election will be held next week, and campaigns are ongoing. There is no guarantee that the doge daddy will not pull a similar stunt at other rallies. The positivities going into the polls will also fuel the uptrends.
Nonetheless, the charts show that the memecoin is due for massive corrections. The relative strength index shows that it is overbought, surging above 70 at the time of writing. Such a breakout may result in a change in price trajectory in the coming days.
This will not be the first time the asset has experienced the effect of being overbought. For example, it dropped by over 14% in less than five days. The same may happen in the coming days, with DOGE sinking with a bigger margin.
Nonetheless, previous price movement shows that the bulls may sustain the ongoing uptrend for longer, making the RSI hit 80. The average directional index supports this claim, rising due to notable momentum.
The moving average convergence divergence is another positive indicator. It was printing sell signals due to the previous week’s price movement but has since halted its action due to the ongoing surge. This means that the memecoin may continues the surge, hitting new highs.
However, the Bollinger band suggests that the uptrend is nearing its peak. Dogecoin recently broke out of upper band which may spell massive corrections in the coming days.
