Dogecoin up over 20% on the day: Elon Musk’s new DOGE tweet shakes the market

Dogecoin (DOGE) experienced another price surge and outperformed the crypto sector by a large margin. Why did DOGE’s price spike up, and should you invest in DOGE now?

Fundamental analysis: Elon Musk on another Dogecoin pumping spree

Dogecoin managed to gain over 20% in the past 24 hours, mostly as a result of its followers’ bullish sentiment. However, everything changed in the past couple of hours as Elon Musk, the CEO of Tesla, changed his Twitter bio to “Doge all day, Doge all night” and posted a picture of Shiba Inu, the Dogecoin mascot, “on the actual moon.”

On the actual moon

— Elon Musk (@elonmusk) February 24, 2021

DOGE posted week-over-week gains of 12.47%, outperforming both BTC‘s week-over-week loss of 2.28% and ETH‘s 8.95% loss. Dogecoin is currently the 14th-largest cryptocurrency by market cap, boasting a value of $7.31 billion.

At the time of writing, DOGE is trading for $0.0573, which represents a price increase of 53.12% when compared to the previous month’s value.

DOGE/USD technical analysis: DOGE fighting for the $0.0577 level

Dogecoin has been trending down ever since the hype around it stopped in early February. However, DOGE found support in the 50% Fib retracement level of $0.0481 and started to reverse. While this price reversal wasn’t poised to revert DOGE back to an uptrend, a recent tweet by Elon Musk made sure that this push was, after all, significant.

DOGE managed to bounce from the 50% Fib retracement level, pass the 21-day EMA and even contest the $0.0577 level. The next couple of hours will show if the cryptocurrency will manage to do so, or if it will continue following its downtrend.

DOGE/USD daily chart

DOGE’s RSI on the daily time-frame has been trending downwards, with its value around the middle of the range. Its current value is currently sitting at 55.45 and has started to trend upwards.

DOGE/USD 1-hour chart

Dogecoin has been pushing up on decent volume ever since late Tuesday, with its price pushing up swiftly (on high volume) twice in the recent 24 hours. The second time this happened, DOGE broke above the $0.0577 level, but quickly returned below it. However, the cryptocurrency is still fighting for this 38.2% Fib retracement level.

It’s also important to note that the 21-hour EMA has crossed the 50-hour EMA to the upside, creating a mini golden cross.

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