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Cryptocurrency Dogecoin managed to grow by 25% in just 2 weeks
The most famous meme token Dogecoin (DOGE) has been strengthening its position since mid-July. Elon Musk, who recently rebranded Twitter, once again supported his favorite altcoin. As a result, DOGE gained more than 25% in value, and trading volume soared by 374%.
Today, July 28, the cryptocurrency is trading at $ 0.076. The coin’s market capitalization amounted to $ 10.7 billion. Traders made daily trading deals worth $ 495.3 million. Earlier in the week, Dogecoin broke above the $ 0.08 level, but was unable to cope with the resistance and fell in price.
Santiment analytical company emphasizes that for the first time in the last 12 weeks, the average profitability of DOGE traders has exceeded 2%. The last time a similar situation was observed was in early May.
The share of profitable wallets has increased to 58%, according to data from the IntoTheBlock platform. Losses are incurred by 39% of cryptocurrency holders. The rise has led to increased activity of futures market participants. Open interest in DOGE futures rose to its highest level since April 19 and amounted to $ 512 million.
The Relative Strength Index (RSI) is in a critical zone and hints that altcoin is being overbought. As a result, analysts predict a correction of the meme-coin in the near future: Dogecoin may drop below $ 0.07, provided that profit-taking does not last for several days. If sales of the virtual coin become massive, DOGE risks falling even lower.
Just a week ago, a well-known crypto trading expert, Ali Martinez, predicted a 10% breakout for Dogecoin (DOGE). The condition is that DOGE has to overcome the psychological boundary of $ 0.75. According to Martinez’s tweet, «a breakout of the $ 0.75 supply wall could trigger a significant rise in the price of Dogecoin to $ 0.85. This level of support is important due to the presence of over 176,000 addresses that have previously purchased over 12.34 billion DOGE coins.» It is quite possible that Martinez’s prediction will turn out to be true.