This week, the cryptocurrency market has seen a near global rise, but the price of Dogecoin (DOGE) has been propelled by Elon Musk’s official purchase of Twitter. As a result, in 7 days, memecoin’s capitalization has more than doubled, surpassing that of blockchains Solana (SOL) and Cardano (ADA).
Big week for Dogecoin (DOGE)
This week was a good one for all cryptocurrencies following a rally in Bitcoin (BTC), the result of a combination of favourable economic factors, particularly following the release of positive quarterly results for most major US companies. But despite this almost general upturn, some crypto-currencies still stand out.
This is the case of Dogecoin (DOGE), the cryptocurrency created in 2013, which was never meant to be more than a joke. And yet, at the time of writing, DOGE sits in 8th place in the crypto-currency rankings in terms of market capitalisation.
Indeed, where BTC and Ether (ETH) have gained 7.7% and 21.6% respectively, DOGE has outperformed the rest of the market and is up a whopping 111% over the same period.
The now famous Shiba Inu cryptocurrency was able to benefit from the general market momentum, but also from Elon Musk’s purchase of the Twitter platform, an acquisition that could have been settled in court, but was finally finalised this week.
Indeed, DOGE is well known to be the billionaire’s favourite cryptocurrency, to the point that it is sometimes possible to use it as a means of payment at Tesla, the company of which Elon Musk is the CEO.
A temporary rise
Dogecoin has enjoyed quite a 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 heavily overbought on the week.
DOGE price, with the overbought area outlined above 70 on the bottom of the screenshot
While this does not necessarily portend as sudden a decline in its price as its recent rise, it may at least suggest a short-term correction or lower volatility in the price.
Alongside a general increase in trading volume on the DOGE, we can also see a significant increase in the number of trades for whales.
Number of trades on the DOGE with an amount greater than $100,000
As a result, the market capitalisation of the DOGE has also increased significantly. Indeed, the latter was just over $8 billion at the beginning of the week and more than doubled over the week, reaching $19.8 billion at its highest point on October 29. However, the DOGE’s capitalisation has continued to rise by more than 17.5% over the past 24 hours.
As a result, DOGE has surpassed the market capitalisation of Solana (SOL) and Cardano (ADA), once again placing it in 8th place on the cryptocurrency podium.
