Should I buy Dogecoin now? DOGE surges 900%

Written by: Ilija Rankovic
January 29, 2021
  • Dogecoin became the most mentioned cryptocurrency on Twitter ever.
  • DOGE has gained close to 900% in just 48 hours.
  • The market is currently trying to get the cryptocurrency to a whopping price of $1 per DOGE.

Should I buy Dogecoin stock today? The question on everyone’s lips after a huge surge in interest.

Dogecoin is in the centre of attention of the financial and crypto sectors as the r/WallStreetBets subreddit started pouring money into it. All it took was a few questions about the cryptocurrency coming from the “Chairman of WallStreetBets” to push DOGE into a skyrocket that ultimately pushed its price up close to 900%. The question everyone asks is “should I buy Dogecoin now?

Fundamental analysis: Dogecoin becomes the most mentioned crypto on Twitter

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Dogecoin (DOGE) is a cryptocurrency-based tribute to the popular “Doge” internet meme. It was created as a Litecoin fork in December 2013 by Jackson Palmer and Billy Markus. Dogecoin’s creators made the project with the intention of it being a fun, light-hearted cryptocurrency that could have an appeal beyond the crypto world due to it being based on a meme, and not just a financial product. CEO of Tesla Elon Musk often posts tweets that talk about Dogecoin, in which he stated that DOGE is his favourite coin.

Dogecoin’s overall outlook is greatly influenced by the current sentiment built around it, as the cryptocurrency became the most mentioned cryptocurrency on Twitter ever. This market “hype” was supported by many well-known individuals, including Tesla’s CEO Elon Musk. Musk tweeted about Dogecoin before as well, claiming that it is his favourite cryptocurrency. The current popularity of the project greatly outshined last year’s “TikTok pump” which brought a massive increase to DOGE’s price as well.

When it comes to its fundamentals though, Dogecoin is not just a memecoin per-se. It has one of the largest active communities in the crypto space, which is quite important. On top of that, the project has turned from a simple meme-based coin to something more functional and real. Dogecoin even managed to sponsor a NASCAR, but also to establish a couple of use cases, mostly in the money transfer department. One of the most common uses for DOGE at the moment is using it as a tipping service.

At the time of writing, DOGE is trading for $0.0533, representing a price increase of 454.19% when compared to the previous month’s value. Dogecoin has officially entered the crypto market cap top10 as the 10th largest cryptocurrency, boasting a market value of $6.925 billion.

DOGE/USD technical analysis: DOGE up by close to 900% in two days

Early Thursday morning, (UTC timezone) Dogecoin managed to gain slightly over 100% in just a couple of hours. Just a day later, its price is up close to 900% from its previous price. DOGE/USD soared on increased volume as investors from all around the world followed the example of r/WallStreetBets and jumped into the crypto market.

Its price is currently up 354.43% on the day, outperforming BTC‘s 19.32% gain and ETH‘s 16.59% gain. DOGE has officially left the triangle pattern formation it has built over the course of 2021.

DOGE’s recent move is overextended by every metric, and will certainly reach exhaustion at some point. however, the current hype built around the cryptocurrency will keep its price up for the time being.

DOGE/USD daily chart

DOGE’s RSI on the daily time-frame skyrocketed to the overbought territory along with its price soaring. Its its current value is sitting at a whopping 94.32.

DOGE/USD 1-hour chart

DOGE’s hourly time-frame better shows us how the cryptocurrency surged from an amazing 100% in a day, all the way up to 900% as the number of investors increased. The trading volume also increased by a whopping 3,500% when compared to its volume before the pump.

DOGE/USD has initiated a pullback once the price hit $0.0736 mark, but quicky found support in its 61.8% Fib retracement and started moving up again. Making predictions on this kind of movement is very hard as everything is based on the “hype” built around the cryptocurrency, but owning a couple of meme-based coins certainly won’t do any harm.