Dogecoin (DOGE) Rallies Sharply on Elon Musk Co-operation, Coinbase Adoption News
Dogecoin (DOGE/USD) and Alt-Coins Price, Analysis, and Chart:
- Dogecoin back in the spotlight after recent heavy losses.
- Broader crypto market stabilizing after recent rout.
Dogecoin (DOGE) is rallying back hard today, pairing back this weeks’ heavy losses. The meme-inspired coin is changing hands at $0.535, up around 25% in the last 24 hours and trimming this weeks’ losses back to just 13%. The 4th largest cryptocurrency now has a market cap of just over $70 billion, a valuation that would make it the 117th largest company in the S&P 500, eclipsing traditional giants including Ford, Kraft Heinz, Du Pont, and Dow Chemical.
The latest price surge can be attributed to two pieces of recent news, one from crypto acolyte Elon Musk and one from the world’s largest crypto exchange, recently floated Coinbase. Tesla boss Musk tweeted last night that he is ‘working with Doge developers to improve system transaction efficiency’, ending his tweet, ‘potentially promising’. Elon Musk’s tweets are very closely watched by cryptocurrency traders and any bullish hint is jumped on quickly.
Crypto exchange, Coinbase (Coin) said at Thursday earnings call that they are looking to offer Dogecoin trading on their platform in the next six to eight weeks. The recently listed exchange has approximately 43 million retail accounts and around 7,000 institutional users, numbers that should give Dogecoin greater visibility and liquidity.
The simple 20-day moving average has provided support for Doge over the last month, and if this remains the case a re-test of recent highs cannot be ruled out. Volatility remains elevated and further sharp moves within the recent $0.35 - $0.74 range cannot be discounted.
Dogecoin (DOGE) Daily Price Chart (February – May 14, 2021)
Chart via @Tradingview.com
The broader cryptocurrency market is stabilizing after yesterday’s rout with Bitcoin flat on the session, but 10% lower on the week, while Ethereum is 1% lower on the day but 12% higher over the last seven days.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.