The Dogecoin price is in a parabolic rally that has pushed the highly-controversial token up by more than 90% in the past 24 hours. Along the way, the coin has now moved back to the top 10 of crypto rankings.
Its total market cap has shooted to more than $33 billion. It has also displaced popular digital tokens like Litecoin, Bitcoin Cash, and Stellar. Most importantly, DOGE is now more valuable than popular companies like DropBox, Box, StitchFix, and WayFair.
What happened: Dogecoin is the talk of the crypto universe after Elon Musk appeared to endorse the currency once again. Dallas Mavericks, owned by Mark Cuban, has also embraced the digital coin by adding it into its balance sheet. The currency has also risen because of its rising popularity, especially in social media. Indeed, as shown below, Dogecoin is the number 1 trending search in the United States.
Meanwhile, the Dogecoin price is rising after the popular Wall Street Bets Reddit page started allowing the currency. The forum also allowed discussions of Bitcoin and Ethereum. In the past, it had a no cryptocurrency policy. Therefore, analysts believe that the platform could lead to more buying pressure.
Dogecoin Price Prediction
In all fairness, conducting a technical analysis of DogeCoin is an incredible daunting task because of its recent volatility. In fact, the Average True Range (ATR) that is a good measure of volatility, has risen to the highest level on record. The price remains substantially higher than all moving averages.
Therefore, in my view, I suspect that this momentum could continue as we move into the weekend as bulls attempt to move above the important resistance at $0.30.
However, because of the volatility, we cannot rule out a situation where the price suffers a major pullback. Remember, in most cases, sharp rises tend to lead to sharper falls in a process known as pump and dump.
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