DOGE Explodes 1000% In A Gamestop-Inspired Rally: Analysis

DOGE explodes 1000%, undergoing one of the fastest bull runs ever recorded on the crypto market as a Reddit group “SatoshiStreetBets” called on the traders to start buying the meme-based token, inspired by the GameStop rally that happened a few days ago. In today’s Dogecoin news, we are reading more about it.

The buying frenzy catapulted DOGE’s market valuation to $9.5 billion and made it the world’s seventh-biggest crypto by capitalization. DOGE explodes 1000% and even the keyword “dogecoin” started trending on Twitter while hitting a weekly timeframe on Google Trends. Binance on the other hand became the 11^th highest daily search trend on Google Trends after listing the DOGE/TRY and DOGE/EUR pairs.

The rally was inspired by the hysteria which was kicked off by a Reddit group r/WallStreetBets was now a group r/SatoshiStreetBets started promoting the coin and tried to copy the explosive gains for GameStop, AMC, BlackBerry, and Bed Bath & Beyond. People on Twitter also called on Elon Musk to tweet about Doge to fuel the frenzy. He tweeted “Gamestonks” which eventually helped the GameStop stocks rise by 150% in a day. Musk is a known supporter of Dogecoin in many of his tweets before but it is difficult to say if he is sarcastic or not given the nature of the coin as a meme token.

Dogecoin’s latest rally was similar to the bull run last year when a viral TikTok video emerged and pumped its price by 35%. It later subsided by 60% because of the profit-taking behavior among retail traders. DOGE/USD is now hinting at a fractal repeat as well. The Relative Strength Indicator for DOGE measures an asset speed and change of price movement and this time it alerted heavily overbought levels. That amounted to a deeper downside correction and made it riskier for traders to enter long positions in the near-trend. DOGE/USD corrected by about 20 percent and its volume subsided, which only put doubts over the extension of the rally in the sessions ahead.

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Market analyst Luke Martin noticed a running capital outflow from DOGE to other altcoins like XRP and said:

 “It pains me to say this….it really does…but it looks like the hot ball of money that pumped DOGE has started to move into XRP. XRP is up 20% in the last 2 hours while the rest of the market is flat.”