The hype round Dogecoin seems to be right here to remain, as tweets from Tesla Inc (NASDAQ: TSLA)’s Elon Musk have been driving market sentiment up even additional.
Completely
— Elon Musk (@elonmusk) February 15, 2021
What occurred: The meme-based cryptocurrency, DOGE, was buying and selling at $0.05692 at press time and its market cap rose to over $7 billion.
DOGE’s worth remained flat for a number of years earlier than its unprecedented 600% rally in January, sending the cryptocurrency to new highs.
Nevertheless, trying to foretell the worth motion of DOGE primarily based on technical indicators has confirmed to be exceptionally troublesome.
Traditional Cup & Deal with sample. $DOGE pic.twitter.com/vnE317M2E0
— Peter Brandt (@PeterLBrandt) February 15, 2021
As a substitute, analysts regarded to metrics reminiscent of social quantity and buying and selling quantity to anticipate worth motion.
Why it issues: Based on knowledge from on-chain analytics platform, Santiment, Elon Musk’s tweet precipitated an enormous quantity of talks round DOGE on platforms reminiscent of Reddit, Twitter, Discord, Telegram.
See also: How to Buy Dogecoin (DOGE)
Santiment means that peak social hype occurs on decrease costs, whereas the ultimate worth high is adopted by much less social quantity than the earlier high. This kinds a divergence between worth and social quantity.
Knowledge additionally reveals {that a} related divergence is noticed between worth and buying and selling quantity, which is one other measure of gauging crowd curiosity within the token.
The charts present that the best quantity of crowd curiosity has been on the earlier worth peak, which was not the highest. The most recent high, which was noticed every week in the past, occurred on each social and buying and selling volumes.
Based on analysts at Santiment, “Dogecoin might be at risk. Until it is social quantity and buying and selling quantity overtake 29 Jan peaks.”
© 2021 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
