Dogecoin [DOGE] decouples: Does Elon Musk have a role to play?
  • DOGE price has increased over 7% in the past 24 hours.
  • Most indexes and market indicators confirmed the upward trend.

The cryptocurrency market has turned slightly bearish over the past 24 hours; dogecoin [DOGE] I succeeded in painting the daily chart green.

Although multiple factors may be at play, a possible reason could be attributed to Elon Musk.

Dogecoin remains bullish

The past 24 hours have not been too volatile for the top coins, including: Bitcoin [BTC] and Ethereum [ETH]because the price moved only slightly.

Dogecoin, on the other hand, bucked the market trend and increased in value by more than 7% in the past 24 hours.

according to coin market capat the time of writing, DOGE is trading at $0.1616, making it the 8th largest cryptocurrency with a market capitalization of over $23 billion.

DOGE’s trading volume also surged along with its price, creating the foundation for a bull market.

A possible reason behind this trend could be Tesla’s recent announcement. The company recently updated its FAQ section. Website He also said that in the future, you will be able to use DOGE to purchase even more Tesla products.

Immediately after this, Dogecoin’s social metrics increased.

AMBCrypto examined Santiment’s data and found that DOGE’s social volume has skyrocketed. Weighted sentiment has also improved. This means that bullish sentiment towards the coin prevailed in the market.

Elon Musk has a history of influencing the price of Dogecoin many times in the past. Therefore, DOGE’s recent bull run could be a result of Tesla’s actions.

Dogecoin social volume skyrockets

Source: Santimento

Will this bull market continue?

Since the bull market may have been caused by Tesla-related hype, AMBCrypto checked the DOGE indicators to see if the indicators support this uptrend.

According to our analysis, DOGE’s open interest increased with price. A rising indicator indicates that current trends are likely to continue.

Meme coin’s MVRV ratio has also entered the positive range. As of this writing, his MVRV ratio value for DOGE is 2.22%, indicating further price appreciation.

In fact, AMBCrypto report It showed that the demand for DOGE is increasing. On May 2nd, 28,000 new addresses were created to trade DOGE, an increase of 102% from the monthly low.

However, the NVT ratio has also skyrocketed, meaning DOGE is overvalued. This suggested a possible price correction.

DOGE open interest rises

Source: Santimento

Regardless of whether it is realistic or not, this DOGE’s BTC market capitalization clause

To see if a price correction is underway, AMBCrypto checked Dogecoin’s daily chart. We have noticed that the Relative Strength Index (RSI) of this coin has been registering an increase.

Its MACD also showed a bullish crossover, suggesting a continuation of price increases. Nevertheless, the Money Flow Index (MFI) remained bearish, below the neutral mark.

Source: TradingView

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