Investors were taken aback this week by the largest meme-coin Dogeoin’s 30% price surge, which occurred at the same time when Elon Musk replaced Twitter’s bird logo with the Shiba Inu logo, which serves as the digital asset’s symbol. The move sparked discussions and received varying opinions from the community.
A trader and analyst predict that Dogecoin will rise by triple-digit percentage points and the $0.25 price is an important level for the digital asset. Kaleo hinted that the meme coin is expected to encounter strong resistance after reaching the $0.25 goal and retrace to slightly about $0.1350.
“I’ll be surprised if DOGE doesn’t run higher through the meme holiday of 4/20. When Elon starts talking about Dogecoin, it usually doesn’t happen in isolated events. He has another meme up his sleeve. It’s just a matter of when he breaks it out. Ten cents and under is free.”
Whale transactions increase rapidly
The unexpected Dogecoin pump and its effects were examined in an analysis published by Santiment. It shows that Dogecoin discussion rates have “absolutely exploded”. But, the price increase came to a halt, and then there was a second jump when the volume leveled out following the initial spike.
Brian Quinlivan, Director of Marketing at Santiment, “Most know by now that when Elon does something on Twitter, it’s usually for the purpose of getting laughs, attention, or money. Perhaps in this case, all three were achieved.” Quinlivan also speculated that these participants probably knew about the planned DOGE pump.
“It was likely something was known by massive DOGE holders, eg. people close to him, and of course Elon himself. This is just speculation, of course, without knowing the identities of the owners of these addresses.”
Whale transactions, those worth more than $100,000—as well as active addresses and circulating volume, trading volume, and transaction volume, all surged quickly, separating from the rest of the cryptocurrency market. This was a “very solid bet,” the analyst said, that the price will form a local top at $0.1047.
