Dogecoin (DOGE) explodes by over 1000% to break into top 10

Meme coin DOGE rocketed to $0.0884 on Binance, rising by over 1000% in 24 hours

Dogecoin (DOGE) exploded by more than 1000% to see its price peak at $0.0884 on cryptocurrency trading platform Binance.

The staggering gains saw DOGE jump into the top 10 on CoinMarketCap, briefly coming close to fifth with its market cap at over $10 billion at the time. At the time of writing, it is the 9th largest with a market cap of $8.2 billion.

A look at the price action suggests that bulls may not have the energy to sustain the pump, and DOGE is likely to quickly retrace.

Is it a buying opportunity?

According to crypto analyst Michaël van de Poppe, pumps on coins like DOGE are “always great for the markets“. But he thinks that this is not the time to buy DOGE. He shared an “old” DOGE/BTC chart noting:

A very old chart on Dogecoin, but the levels are still applicable. Held the 15 sats range as a very old level, flipped 22 sats, and accelerated towards TP1. Is this an entry? Obviously not. But a pump on DOGE is always great for the markets.”

DOGE/BTC chart. Source: Michaël van de Poppe

The 30-minute chart below shows that bears are increasing the downward pressure that has sent prices lower since the intraday peak. Currently, the DOGE/USD pair has broken below support of the 20-SMA on the timeframe at $0.050. If profit booking keeps the pressure valve open, then prices could quickly fall to the 50-SMA level ($0.029).

DOGE/USD 30-minute chart. Source: TradingView

A downsloping RSI that has crossed below the middle line does not provide any solace to bulls and we could see DOGE hit prices under $0.020.

On the contrary, holding above the 50-SMA could help bulls build fresh momentum and attempt higher prices.

WallStreetBets and the DOGE/USD pump

Dogecoin traded at lows of $0.007 but skyrocketed after the WSB Chairman tweeted to more than 724,000 followers about Dogecoin’s price.

Has Dogecoin ever been to a dollar?”

The account’s bio claims that WSB is the ‘Chairman of the WallStreetBets movement’.

Last week, the group’s Reddit users mobilised and helped pump GameStop (GME), a Wall Street-traded stock shorted by several billion-dollar hedge funds. The GME price rose exponentially, eventually putting a squeeze on a Wall Street hedge fund that had to declare bankruptcy.

Tesla CEO Elon Musk also helped pump the coin, with a tweet that showed the cover of “Dogue”, in an apparent reference to the meme coin.

A cover image of “Dogue”. Source: Elon Musk on Twitter

In just 24 hours, the price of DOGE erupted. First, it rose by more than 520% to hit highs of $0.044. Then frenzied buying witnessed early Friday saw DOGE/USD peak at $0.0894 on Binance.

According to CoinMarketCap, the aggregated all-time high of DOGE/USD is $0.0779.

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