Dogecoin bucks the trend with a significant price increase- Here’s how

On Apr 3, 2023

Dogecoin experienced a price surge over the past few days, propelling it into a strong bullish trend.
Whales have also been on an accumulation spree, with the possibility of a dump following.

Over the last few days, Dogecoin has defied other cryptocurrencies’ price movements by charting a different course. Although the reason for this sudden upswing is not apparent, its effect on other indicators is undoubtedly intriguing.

Dogecoin on a daily timeframe

Dogecoin (DOGE) has witnessed a remarkable surge in value over the last 72 hours, posting an almost 11% increase, with the highest jump recorded on 1 April.

As of this writing, it was trading at approximately $0.08, with less than a 1% loss observed. The price spike has also propelled DOGE above the long and short Moving Averages (blue and yellow lines). The move marked the first time it had achieved this feat since 21 February.

Source: TradingView

Furthermore, the price hike propelled Dogecoin into a strong bullish trend, as evidenced by the Relative Strength Index (RSI) line. The RSI had crossed the neutral threshold and risen above 60, signaling a strong bullish trend.

Additionally, the Moving Average Convergence Divergence (MACD) indicated a flip above zero, further confirming the bullish momentum the RSI indicated.

Whales accumulate billions of Dogecoin

Santiment’s data revealed that since 1 January, whales have been engaging in an accumulation spree. Accounts holding 10 million or more Dogecoins (DOGE) have amassed over 1.47 billion tokens, worth approximately $123 million at current valuation.

DOGE whale accumulation

Source: Santiment

However, a closer examination of the chart showed both upward and downward trends in accumulation. The trend suggested that these addresses were both accumulating and dumping DOGE tokens.

The outcome of this accumulation phase remains uncertain, and whether a dump will follow suit remains to be seen.

The 30-day DOGE MVRV

Like the price surge, the Market Value to Realized Value ratio (MVRV) also experienced a steady rise. As of this writing, the MVRV ratio stood at 14.92%, suggesting that DOGE was overvalued, and a correction could be imminent.

DOGE 30-day MVRV

Source: Santiment

Furthermore, the 24-hour active address metric indicated a high level of engagement with the DOGE token. At the time of writing, the number of active addresses stood at approximately 130,000.

Dogecoin 24-hour active address

Source: Santiment

The Elon Musk lawsuit and the April fool joke

According to Reuters’ reports, Elon Musk has requested that the lawsuit brought against him and Tesla by a group of Dogecoin investors be dismissed. The case, worth $250 billion, alleged that Musk was operating a pyramid scheme to support Dogecoin, a claim he denies.

On 1 April, Satoshi Nakamoto, the creator of Bitcoin, made a surprise appearance on the Bitcointalk forum. He left a message apologizing for his prolonged absence and claimed to have been working on Dogecoin behind the scenes.

However, as it turned out, the message was an April Fool’s joke. It was perpetuated by a community member and not genuine communication from the elusive Bitcoin founder.

This article originally appeared here.