Thanks to Twitter’s purchase, the value of the Dogecoin cryptocurrency has increased by 150% in just 4 days

The price of DOGE could fall by 60% by the end of this year as the token has reached its highest overbought level since April 2021.

The price of Dogecoin jumped by almost 75% to reach $ 0.146 on October 29, the largest daily gain since April last year. In total, the price of DOGE increased by 150% during the price rally on October 25−29. The growth of the meme-coin is fully attributed to the fact that Elon Musk has finally acquired Twitter — Musk is the main DOGE evangelist.

The surge was also accompanied by a noticeable increase in daily trading volumes. According to Santiment, this coincided with a surge in the number of DOGE transactions exceeding $ 100,000. Both indicators indicate the demand for Dogecoin tokens among wealthy investors, or so-called «whales.»

Overbought conditions do not necessarily mean an immediate bearish reversal. But they do reflect the current euphoric momentum in the market, which will sooner or later start to push the price either sideways or downward.