Elon Musk has done it again, tweeting about his favorite coin, DOGE. The digital asset reacted positively again jumping by 50% within 2 hours and plummeting down in the next few hours. However, this time, Dogecoin price managed to recover quite well and bounced off a crucial support level in the short-term.
It seems that perhaps this time, DOGE can manage to hold its own and continue rising higher without the help of Elon Musk. This is probably caused by investors buying Dogecoin in anticipation of Elon Musk or other celebrities tweeting and endorsing DOGE and pumping the price.
Dogecoin price might rise higher despite insane volatility
The digital asset has obviously experienced a lot of volatility lately but it seems to be holding somewhat stable above $0.027. On the 1-hour chart, Dogecoin price has been holding the 12-EMA for the past several hours and bounced significantly every time.
The digital asset faces a strong resistance level at $0.0599 and then another crucial point at $0.069. Above that, there are no other barriers besides the all-time high of $0.087. Of course, investors must be extremely careful as the digital asset remains volatile and many popular influencers are jumping in.
This run has been extremely impressive for Dogecoin which managed to almost reach $10 billion in market capitalization beating coins like Stellar, Bitcoin Cash, Binance Coin, and even Litecoin or Chainlink. What’s interesting is, that the last time Dogecoin had a significant spike was back on December 12, 2017, until January 8, 2018, which was the beginning of a massive alt season.
A lot of cryptocurrency enthusiasts believe that perhaps this pump is also the beginning of another alt season. Funnily enough, the market capitalization of altcoins has jumped from $363 billion to $440 billion in the past week, coinciding with Doge’s pump.