Dogecoin (DOGE) was recently subject to a massive rally, due to Elon Musk replacing the Twitter logo with the Dogecoin mascot. Although the increase was supported by a spike in discussion, trading and transaction volumes, key players most likely took large profits, resulting in the price dropping back nearly 9% from its peak. On-chain analytics service Santiment, however, believes Dogecoin may have further upside potential, depending on a daily close above $0.08891.

As seen, when Musk's tweet was posted, attention to Dogecoin was predictably high and prices skyrocketed, but following the event the price has not been able to hold the level suggesting that traders took the opportunity to take profits. As the level of interest receded, the volume of trading slowed and the price dipped again.

Santiment's analysis of DOGE addresses suggests that whales, those owning over 10 million DOGE, had some knowledge of Musk's plan and acted accordingly. On the other hand, the 30-day Market Value to Realized Value (MVRV) shows that Dogecoin could still be in for gains if the daily close is above $0.08891.

Overall, although the rally caused by Musk's tweet seemed to be inorganic, investors should not be fooled. On-chain data from Santiment provides an analysis of the situation, indicating that Dogecoin may be able to launch another rally if the $0.08891 price point is breached. In any case, it's important to analyze the crypto market carefully and consider any potential factors that can result in large price movements.



Other News from Today