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Dogecoin (DOGE/USD) saw an overnight rally of about 80%, indicating that Wall Street Bet’s crypto division still has plans for the cryptocurrency. Dogecoin came into the limelight following a 900% pump on January 28, which catapulted the meme cryptocurrency to rank as the tenth-largest cryptocurrency based on market capitalization for the first time since 2015.
As the massive rally began to lose momentum, many traders rapidly cleared their profits, as it looks like the investors are now looking for something else to invest in.
The spike was originally sparked when exchanges restricted traders from acquiring more AMC and GameStop stocks on January 28, prompting the Reddit investors to seek other investment alternatives like silver and some “cheap” cryptocurrencies.
On January 28, the Twitter user “WSB Chairman” tweeted to his 750k followers, saying “has Doge ever been to a dollar?” This question sparked a massive rally in DOGE, despite the crypto having no protocol upgrades since 2015.
Several social media influencers were very discontent with buying the top of the rally, indicating that the speculative frenzy has ended.
It is almost impossible to pinpoint the exact reason for the spikes, considering that there are several social networks, especially private Telegram groups and trading signal apps, actively participating in the price action.
That said, measuring social media activities could become the norm for speculation.
Key DOGE Levels to Watch — February 5
DOGE/USD appears to have gone into consolidation between $0.0450 and $0.0350, as its bullish momentum loses steam. The cryptocurrency’s recent price action has formed a triangle pattern, indicating that a spike (to either direction) is just around the corner.
That said, we expect a retrace to the $0.350 supporting the coming hours, where a rebound to the $0.0500 round figure and higher will likely occur.
Meanwhile, our key resistance levels are at $0.0450, $0.0500, and $0.0600. While our key support levels are at $0.0350, $0.0270, and $0.0220.
Total Market Capitalization: $1 trillion
Dogecoin Market Capitalization: $4.7 billion
Dogecoin Dominance: 0.47%
Source: https://learn2.trade
