Dogecoin (DOGE) Skyrockets To New All-Time Highs - Here’s What Happened

Even though Dogecoin was initially created as a joke cryptocurrency, its recent price performance is nothing to joke about. The meme-based cryptocurrency experienced yet another price surge that brought it to a new all-time high of just under $0.45 and a market cap of well over $50 billion. So, what’s the reason behind its massive price increase?

The most prominent and promising projects in the crypto industry had a great week, with many of them hitting new all-time highs. However, a parody cryptocurrency Dogecoin outperformed almost every single one of them with a sharp move up that increased its price by over 500% in just 72 hours.

Coinbase Global was the main reason and catalyst for the current bull run in the crypto sector, as the exchange giant’s public listing went extraordinarily well. Coinbase’s market capitalization briefly hit the $100 billion mark after it went live on Wednesday, causing cryptocurrencies to push up.

However, this is not the end to the events that contributed to DOGE’s skyrocketing price.

CEO of Tesla Elon Musk is a prominent Dogecoin investor for quite some time. His tweets single-handedly caused DOGE’s price to increase on several occasions. This time, however, he was not the only factor in Dogecoin’s price increase, but rather a contributing factor.

While most price increases based on news such as this end up with a significant price decrease after a couple of hours, Musk’s tweet has kept Dogecoin at crucial levels, and helped it overcome a major price obstacle - $0.1445. After a whole month of not tweeting about Dogecoin, Musk posted a picture of a dog barking at the moon, with him calling it “Doge Barking at the Moon,” once again referencing his favorite cryptocurrency.

The cryptocurrency with the face of Shiba Inu as its logo has soared more than 2,000% in 2021 alone, with its most famous fan being Elon Musk. Dogecoin has also received something of a cult status on Reddit, where a popular group decided earlier this year to mass-invest and propel its value "to the moon."

DOGE posted week-over-week gains of 358.44%, outperforming both BTC‘s week-over-week gain of 1.67% and ETH‘s 12.48% gain. Dogecoin is currently the 8th-largest cryptocurrency by market capitalization, boasting a value of $37.80 billion.

At the time of writing, DOGE is trading for $0.2828, which represents a price increase of 12% over the last 24 hours.

Dogecoin was trending down or trading sideways ever since its 7 February all-time high. However, the recent crypto sector uptick pushed DOGE up as well, opening the path towards new highs. The main reasons behind this sudden price increase were, at first, based on fundamentals rather than technicals, but quickly transitioned into FOMO trading.

DOGE managed to, on the news of Coinbase Global exchange listing, push from just below $0.07 all the way to a new all-time high of $0.1445. Elon Musk’s tweet played a crucial role here, as it kept DOGE from descending below $0.125 and helped it push above its (at that time) all-time high.

After managing to pass this crucial level, the price of Dogecoin skyrocketed, conquering one level after another until it finally stopped at $0.448.

DOGE’s Relative Strength Index (RSI) and Money Flow Index (MFI) on the 4-hour time-frame were both heavily in the overbought territory, but have now reentered the regular trading range. They are sitting at a value of 64.19 and 69.30, respectively.

Both of these oscillators are currently descending as DOGE is trying to find a level to consolidate at.