The last 24 hours saw the price of Dogecoin record a rise of 4%, as the arrival of 4/20, also referred to as Doge Day, pushed up the price of the token to $0.091902.
The rally came as there was a 1% decline in the broader crypto market during the same time frame, which indicates that 4/20, or Doge Day, has had a real influence on the market and traders.
It also showed that they could have expected Elon Musk and DOGE’s developers to do something to mark the occasion.
Whether they do or not, the fact is that DOGE has already recorded gains of 10% in the last week and the last 30 days have seen the meme token rise by 27%.
Since the beginning of the year, the altcoin has seen a return of 30%. There could also be further rallies in the year, as the Dogecoin community is still holding onto hope that Twitter will eventually introduce DOGE payments.
The indicators
As opposed to most other cryptocurrencies, the Dogecoin indicators seemed to be in a prime position, which indicates that the token could have just initiated a breakout rally.
The most prominent is that the 30-day moving average that has just managed to surpass the 200-day moving average, which is usually an indication that the upward buying momentum has climbed to a new level.
Likewise, there has also been growth in the relative strength index (RSI) of Dogecoin, as it has managed to go beyond 60 to reach 70 and even higher. This indicates that there could be further rises in the price.
Other scenario
April 20th is the day that Doge Day is celebrated because this is when meme coins gain more attention and publicity.
However, a few major DOGE transactions have been tracked by Dogecoin Whale Alert, which show that the meme coin is being moved to exchanges.
There is a possibility that these transfers could have been made for the purpose of selling off the token at the peak of exuberance on Doge Day.
Therefore, traders may want to get out of their positions before there is a correction, which will definitely be inevitable.
Elon Musk
Nonetheless, the medium-term as well as the long-term picture appears to be in favor of Dogecoin and this is primarily because of the ongoing support that token has gotten from Elon Musk.
Musk has continued to champion and reference the largest meme token in the market at nearly every available opportunity.
Last week, the Tesla and Twitter owner announced that he was willing to pay 1 million DOGE tokens to anyone who would be able to share proof that his family had owned an emerald mine.
This was after he had changed Twitter’s traditional logo of a blue bird to the Dogecoin mascot i.e. a Shiba Inu dog. He has been doing similar things since the beginning of the year.