Dogecoin [DOGE] enjoyed a comfortable rally last week as the coin’s price skyrocketed by double digits. As a result, the popularity of the world’s largest memecoin has skyrocketed over the past few days.
Decoding the Dogecoin Price Surge
Dogecoin bulls have been on a tear over the past week, according to CoinMarketCap. The memecoin’s price has surged more than 27% over the past seven days. The recent surge has seen more than 5 million DOGE addresses make a profit, accounting for more than 80% of all DOGE addresses, according to data from IntoTheBlock.
Meanwhile, Emperor Osmo, a popular cryptocurrency analyst, recently posted a tweet revealing an interesting update. According to the tweet, DOGE’s popularity is on the rise as the coin reached the number 1 spot in terms of popularity in memes.
AMBCrypto’s Santiment data analysis also points to a similar development. We see that Dogecoin’s social trading volume increased last week. Additionally, the coin’s Weighted Sentiment Index remained positive on most days last week.
This clearly means that the bullish sentiment surrounding DOGE is high, as investors expect the price of the coin to rise further.
This is the point!
However, the strong increase in memecoin's popularity could not help it maintain its bullish momentum. This happened as the price of memecoin fell by more than 1% in the past 24 hours.
At the time of writing, Dogecoin is trading at $0.141 with a market capitalization of over $20 billion, making it the eighth largest cryptocurrency.
Therefore, AMBCrypto has planned to take a closer look at the current state of the coin to better understand what to expect from it.
According to our analysis, DOGE's MVRV remains high, which can be considered a bullish signal. However, Dogecoin miners are not confident in the coin.
This is evidenced by the large drop in supply held by miners, meaning they sold DOGE as the price rose because they expected the trend to change.
Our review of DOGE’s daily chart shows that the coin was rejected at the resistance near $0.14428. One possible reason behind this could be increased selling pressure.
Dogecoin's Money Flow Index (MFI) has entered overbought territory, which could trigger a sell-off. However, the MACD continues to show bullish momentum in the market. This could help memecoin break above resistance in the coming days.
