Dogecoin price is the main talk in the crypto universe this week. The DOGE has jumped by more than 95% in the past 24 hours and by more than 750% in the past 7 days. That has pushed its total market cap to more than $9 billion making it the 7th biggest cryptocurrency in the world. As it turns out, it is now bigger than Litecoin and Bitcoin Cash that are valued at more than $8.8 billion and $7.4 billion.
The background: A few weeks ago, Dogecoin was a relatively unknown digital currency. It is one of the more than 4,000 currencies attempting to find its place. Dogecoin is a decentralized digital currency that people can use to shop online. To do this, they need to install a wallet in their computers and mobile devices. However, unlike most currencies like Litecoin and Bitcoin, very few companies accept Dogecoin.
Dogecoin price spikes: This week, the Dogecoin price spiked in part because of the ongoing euphoria in Wall Street. For starters, weird things have happened this week. Day traders using online platforms like Discord and Reddit have managed to pump some of the previously hated companies like Nokia, AMC, and GameStop.
In response to the rising volatility, brokers like Robinhood and TD Ameritrade decided to suspend trading of these assets. In response, the traders started to hype Dogecoin, pushing its price to an all-time high. As volume rose, Coinbase also decided to limit trading of DOGE.
The daily chart below shows the magnitude of the ongoing euphoria. The chart shows that before the pump, the currency was forming a bullish pennant pattern that is shown in blue. Therefore, the breakout was partly because of this pennant buildup that has been going on.
Therefore, in normal market conditions, it would be easy to predict the performance of Dogecoin price. But we are not in normal times. As such, the uptrend could accelerate during the weekend. Also, we should not rule-out a pullback.
