- Dogecoin experiences a 600% increase in its social dominance, surpassing 10 cents as Bitcoin climbs to $64,000.
- Dogecoin’s RSI indicates overbought at 73.4071, suggesting caution ahead of a potential market correction.
Have you heard the latest on Dogecoin? Yes, our favorite memecoin, is now giving a lot to talk about. And no wonder. Imagine a 600% jump in its “social dominance score” in a single day! This metric measures the volume of conversation about Dogecoin across all social networks, and when it skyrockets, it usually means something big is happening. But just how big is this? Let’s break it down.
Price and Society Shake Hands
While you’re sipping your morning coffee, Dogecoin crosses the 10 cent mark.Coincidence? I don’t think so. As ETHNews previously pointed out, these types of moves are not isolated. Bitcoin has also been on a winning streak, surpassing $64,000 and driving the entire cryptocurrency market higher.
In this financial whirlwind, Dogecoin has not only captured the attention of memecoin enthusiasts but also claimed its place in the top ten cryptocurrencies by market capitalization. According to a previous report by ETHNews, this recovery is significant, surpassing giants such as Avalanche (AVAX).
Is it time to sell? RSI Speaks Out
This is where things get technical. While the fervor in networks and the rise in price are exciting, the Relative Strength Index (RSI) is giving us a caution signal. At 88.50, Dogecoin is in the overbought zone.
For the uninitiated, this could mean that, although the party is in full swing, the music may soon turn down. This indicator, which measures the momentum of price movements, suggests that we could be looking at a potential correction. Should we then prepare for a massive sell-off?
Activity on the Chain: A Testimony of Growth
Before you consider selling all your coins, get this. Position liquidation, especially among those betting against Dogecoin, reached $30.52 million in short positions. This, as already reported by ETHNews, shows that many were wrong to underestimate this dog of the crypto world .
Furthermore, an 86% increase in new wallet creation and a 37% jump in active wallet addresses tell a story of growth and adoption. These numbers don’t lie; there is a growing movement behind Dogecoin that goes beyond the daily fluctuations of the market.
What Does It All Tell Us?
First, that the excitement around Dogecoin is real and backed by a tangible increase in interest and adoption. Second, although the market is showing signs of overbought, the Dogecoin narrative is far from a mere fad.
Activity data on the blockchain reflects a growing community and increased adoption, positive signs for its long-term future. Dogecoin has once again shown us that in the world of cryptocurrencies, anything is possible.
Between technical analysis and the power of social media, this coin continues to defy expectations and carve its own path in the history of digital finance. Will this be Dogecoin’s moment? Only time will tell, but one thing is for sure: the journey so far has been anything but boring.
At the time of writing, DOGE is trading at $0.1308
