Dogecoin was struggling in the market right up until the Twitter deal was finalized. However, once the Elon Musk takeover was announced, the meme coin rallied enormously and was up more than 100% in just a matter of days. This has no doubt given renewed momentum to the digital asset which was previously down more than 85% from its all-time high.
Dogecoin Reclaims 8th Position
Dogecoin had fallen to the 10th position on the list of largest cryptocurrencies by market cap after spending a good portion of the bull market in higher positions. Nonetheless, the meme coin had mostly held this spot save for a few times when it had been dethroned. This is until Friday after Musk had officially taken ownership of the social media platform Twitter.
The rally that followed for Dogecoin was one for the books, taking the digital asset from around $0.07 to peak at $0.15. This saw the market cap of Dogecoin more than double, pushing it higher on the list. At the time of this writing, DOGE had been able to claim the 8th spot on the list.
Naturally, there has been a downward correction following this but the meme coin still remains the 8th largest cryptocurrency by market cap. And given the recent decline in the general market, DOGE has been able to hold its value much better than others.
DOGE holds weekend gains | Source: DOGEUSD on TradingView.com
Waiting On Elon Musk
Now that the Twitter deal is finalized, the Dogecoin community is waiting on Elon Musk to present any plans to integrate Dogecoin into the social media platform. Musk has always been vocal in his support for the meme coin and how it would be a great addition to the supported cryptocurrencies on Twitter. However, Musk is yet to say anything about Dogecoin in connection with Twitter.
This has not stopped the widespread bullishness among DOGE supporters though. Matt Wallace is another vocal supporter of the meme coin that has been continuously tweeting about DOGE and his most recent tweet calls for DOGE support on Twitter Blue.
Dogecoin’s Fear & Greed Index also shows this bullishness as it is currently sitting at a score of 60. This market sentiment analysis shows that investors are more willing to put money into DOGE now, hence its ability to continuously hold up its value.
Dogecoin Fear and Greed Index is 60 — Greed pic.twitter.com/IZ6t5H8IaU
— Doge Fear and Greed Index (@DogecoinFear) October 31, 2022
Meme coins in general are responding quite well to the news. DOGE’s trading volume had grown 300% month-over-month and others such as Shiba Inu had seen similar growth.
Dogecoin is currently trading at $0.122 at the time of this writing. It is down 9% in the last 24 hours but remains in the green on a 7-day moving average of 97%.
Featured image from Bloomberg, chart from TradingView.com
Alex
