The popular meme coin Dogecoin [DOGE] experienced a large rally over the past 24 hours as the entire market corrected. The price of the Elon Musk-backed cryptocurrency has since risen on news that Elon Musk will finalize his takeover of social media behemoth Twitter on October 28.
17% Price Gain In 24 Hours
On October 26, during the intraday trading session, DOGE’s price increased above $0.072 for the first time in the previous ten weeks, according to statistics from the on-chain analytics platform Santiment. Still on the upward, according to data from CoinMarketCap, DOGE traded at $0.07768 as of this writing, having increased by 17% over the previous 24 hours.
On October 26, DOGE’s price not only increased, but so did its trading volume and the number of whale transactions that were carried out on the network. These increased to levels last seen in August, according to Santiment.
Before 23:00 UTC on October 26, more than 450 DOGE whale transactions totaling more than $100,000 had been executed. The count was 190 as of the time of this writing. Additionally, during yesterday’s (October 26) transaction, DOGE’s intraday trading volume reached a high of $1.18 billion. According to CoinMarketCap, at the time of publication, this was valued at $1.71 billion and had increased by 170% over the previous day.
DOGE Price Action Remains Fickle
While the rebound may have provided long-term holders with the much-needed relief, DOGE’s price fluctuations on a daily chart gave cautionary signs. The meme currency was significantly overbought at the time of writing, according to key indicators, and a drop was expected to follow.
The overbought region of 79 on DOGE’s Relative Strength Index (RSI) was seen far from the neutral level. The indicator’s abrupt increase from 44.82 (below the mid-point) on October 24 to 79 (deep in the overbought zone) that day showed a sharp increase in buying pressure recently. Such highs typically result from buyers becoming exhausted and unable to maintain the same, leading to a reverse.
Following a similar course, DOGE’s Money Flow Index (MFI) was set at 85 as of the time of publication. The indicator’s value increased from 45 to its current position between October 24 and the time of publication. This implied that the meme coin was overbought and that the bears will start a reverse shortly.
Surprisingly, despite the increase in price, holders of DOGE held at a loss as evidenced by its Market Value to Realized Value (MVRV) ratio on a 1-day moving average due to its protracted decrease. Most shareholders would experience losses if they all sold their assets at the current price, which was -30.42% at press time.
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