After several days of stagnation, the price of Dogecoin (DOGE), the world’s biggest meme token, suddenly started to climb. This surge could be attributed to multiple factors, with one of the critical ones potentially being the actions of Elon Musk.
Price Increase in DOGE!
According to data from the website 21milyon.com, like most other cryptocurrencies, DOGE’s price chart had been stable for several days. However, its value has increased by more than 10% in just the last 24 hours. This rise resulted in an upward trend in both daily and weekly charts. At the time of writing, DOGE is trading at $0.08648 with a market value of over $12.3 billion. The uptrend was accompanied by an increase of more than 200% in daily trading volume.
Thanks to the price surge, Dogecoin’s social volume saw a significant increase on January 21. The rise in weighted sentiment indicates that the bullish sentiment surrounding the meme token has become dominant in the market. One of the key reasons behind this recent uptrend could be Elon Musk’s latest decision, particularly his launch of the official XPayments via X recently.
The Elon Musk Effect
Elon Musk has been an enthusiastic supporter of DOGE in the past years and never missed an opportunity to create excitement around it. In fact, when Musk previously announced plans to integrate Dogecoin with X, the meme token’s price had surged rapidly. The current price increase of DOGE was sufficient to excite investors and led them to take a more detailed look at the metrics.
Analyses indicate that DOGE’s MACD shows an upward trend, suggesting a potential for further increases. However, the rest of the indicators looked bearish. For example, DOGE’s price touched the upper limit of the Bollinger Bands. The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) also recorded a decline. This could indicate that the northward price movement might end sooner than expected.