Dogecoin: Is there extra to DOGE's 18% pump?
Dogecoin finally managed to flash a green candle on Tuesday after four consecutive red candles on the daily chart. In fact, it managed to quickly move up the rankings by over 18 percent in the early hours of the day.
Dogecoin was unable to maintain its upward trajectory due to the continued instability of the larger market. For a short time, it was stable at $0.058 and $0.056, before starting to fall.
Nonetheless, Dogecoin seems to be back on track over the last hour, with two consecutive green candles on the 30-minute chart. In fact, its RSI reading had matched its average level and was edging closer to the overbought area, indicating that buyers were taking control of the situation.
Is Dogecoin going to keep on pumping?
The buyer-seller trading differential from ITB bolstered the story. From the minute windows through the hourly windows, the purchase trades had handily outstripped the sell trades by millions of tokens on all of the frames. The photo provided below demonstrates this.
Along with the aforementioned purchase transactions, a spike in the number of daily active addresses was also observed. According to ITB statistics, this indicator has increased by 21.34 % in the last week. In reality, the DAA curve stayed flat until the end of last week, increasing just in the last few days, indicating a revived interest in Dogecoin among market players.
So, given the current state of indicators and the market's purchasing tendency, Dogecoin should be able to prolong its relief rally for a little time. However, it's worth noting that the meme currencies' correlation to Bitcoin has risen from a 30-day low of 0.29 on June 11 to 0.88 today. This effectively implies that if Bitcoin's value drops, Dogecoin will be dragged down with it. DOGE's relief rally might be prematurely halted as a result of this.
