In the last 24 hours Dogecoin ($DOGE
) shows an impressive performance, continuing to grow even in a weak market. All because the memcoin's rally is supported by several external factors at once
Let's understand what's going on with Dogecoin (DOGE) price and whether the growth of the memcoin will continue.
Dogecoin has a lot of support
Over the past 30 days, the Dogecoin #exchange rate has soared by an impressive 56.5%. This was facilitated by several positive signals at once - the celebration of Doge Day, which traditionally took place on November 2, and the tweets of American businessman Ilon Musk, who often mentions his favorite memcoin.
Due to DOGE's active presence in the infopole, the number of active addresses per day (DAA) remains consistently high. This metric is important for the asset's price to continue to rise. As the DAA stays steadily in the positive zone, memcoin has every chance for a further rally.
Meanwhile, IntoTheBlock notes an increase in the number of short-term Dogecoin holders. The number of investors holding DOGE for the last 30 days has increased compared to the number of those who have held the asset for more than a year.
Such dynamics indicates an increased interest in the cryptocurrency and the activity of new market participants. This is another factor that can support Dogecoin's upward movement.
Earlier, the editorial staff of BIC told how the politics of America and meme tokens are connected. Read about how the results of the US presidential election will determine the future of memcoins in our research.
DOGE forecast: waiting for a “bull flag”
At the time of writing this analysis, DOGE is trading at $0.1713, having risen in value by 8.9% in the last 24 hours.
The results of the previous BIC analysis showed that a bullish flag may be forming on the cryptocurrency's chart. This pattern often heralds a new round of growth after a short-term consolidation. If the assumption is correct, Dogecoin may grow by ~12% and reach $0.19 in the near future.
Nevertheless, some external factors - for example, the defeat of Donald Trump at the presidential elections in the United States, which started today - may provoke a sell-off of the memcoin. In such a case, DOGE is threatened with a drawdown to $0.14.