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The Dogecoin price is on a parabolic rise, with the highly-controversial cryptocurrency up by more than 90% in the last 24 hours. In the way, the coin has re-entered the top ten crypto charts.
Its gross market capitalisation has risen to more than $33 billion. It has also pushed famous digital tokens like Litecoin, Bitcoin Cash, and Stellar out of the market. Most notably, DOGE is now worth more than well-known firms such as DropBox, Box, StitchFix, and WayFair.
What happened: Dogecoin has become the talk of the crypto world after Elon Musk appeared to re-endorse the currency. Mark Cuban’s Dallas Mavericks have also welcomed the digital coin by including it on their balance sheet. The currency has also risen as a result of its growing popularity, especially on social media. Indeed, as seen in the graph below, Dogecoin is the most common trending search term in the United States.
Meanwhile, the price of Dogecoin has risen since the famous Wall Street Bets Reddit page began accepting the currency. The platform also allowed for Bitcoin and Ethereum discussions. It formerly has a no cryptocurrency stance. As a result, analysts expect that the platform would increase purchasing pressure.
To be honest, doing a technological review of DogeCoin is an extremely difficult challenge due to its recent instability. In reality, the Average True Range (ATR), a strong indicator of uncertainty, has reached its highest level on record. The price is already far higher than all moving averages.
As a result, I believe that this momentum will continue as we approach the weekend, as bulls attempt to break through the key resistance level of $0.30.
However, due to the uncertainty, we cannot rule out the possibility of a significant price drop. Remember that in most situations, sharp rises contribute to much sharper declines, a phenomenon known as pump and dump.