Decoding Dogecoin’s Hopium-led 9.5% Rally and What It Means for the Investors

Dogecoin was a relatively unknown coin until Elon Musk discovered it. Every time the ‘Doge-father’ has spoken in his favor, the token goes for a walk-up high on the price chart. The man who caused a crash by halting Bitcoin payments also managed to kick off a DOGE rally on March 15 amid a bear market.

Dogecoin’s day out

DOGE had a rather interesting day on March 15 after the memecoin suddenly rallyed. The turnout was, of course, prompted by the words of none other than the “Doge Father.” Elon Musk has informed Michael Saylor of Microstrategy that he will not sell his DOGE, BTC or ETH.

The conversation, which took place in the context of rising inflation and falling USD value, prompted both men to state how much they value cryptocurrencies.

Of course, the hopium caused the price to rise and DOGE hit $0.122. But it soon fell on the price charts. At the time of writing, it was trading at $0.1128, just 1.61% higher than at the start of the day.

Since the broader market indications are a bit bearish at the moment, the price movement underway will not be in favor of bulls. It is also important to note that the Average Directional Index (ADX) is accelerating in a downtrend. And the Squeeze Momentum also observes increased bearishness. It looks like DOGE is likely looking high to hit $0.1 if the trend doesn’t change.

Dogecoin price promotion | Source: TradingView – Coin-Crypto

Should the price fall again, it will only add to the concerns of investors who were only looking for a way out of the market’s bearishness.

For them, the situation is quite dire at the moment as more than 67,000 DOGE holders have exited the market after the 4% price increase on March 9. Fearing another crash, these investors seized the first chance they got to avoid losses.

Dogecoin investors exit the market | Source: Intotheblock – Coin-Crypto

Also, the speed was very low when it comes to Dogecoin. It indicates that investors are seemingly not moving their DOGE. In particular, continued bearishness will further diminish investor confidence and lead to HODLing.

Dogecoin speed | Source: Santiment – ​​​​Coin-Crypto

It should also be noted that the altcoin’s low volatility can keep its price swings in check. At the same time, DOGE’s correlation with Bitcoin could be a concern as the king’s coin shows mixed signals.

In addition, as Bitcoin is up 2.78%, a high correlation will now be beneficial. If the correlation drops, Dogecoin could be in trouble.

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