Dogecoin surges 102% as WallStreetBets subreddit steps in

Dogecoin managed to double in price after the “Chairman of WallStreetBets” subreddit asked about it

Dogecoin (DOGE) is a cryptocurrency based on the popular “Doge” Internet meme. It was created by Billy Markus and Jackson Palmer, and started as Litecoin’s hard fork in December 2013. Dogecoin’s creators envisaged the cryptocurrency as a fun, light-hearted project that would have greater appeal beyond the crypto audience since it was based on a meme. Tesla CEO Elon Musk often posts tweets on the topic of Dogecoin, stating that it is his favourite coin.

Dogecoin’s overall outlook is extremely dependent on the market “hype,” as its supporters and investors often think of it as a meme coin, and therefore are not interested in its price. However, the recent events have proven that Dogecoin might be very overlooked, and that it has quite a bit of potential.

DOGE/USD

Dogecoin (DOGE) has been trading within a triangle formation ever since the start of 2021. However, the cryptocurrency abruptly left the pattern and surged in price as one of the more influential WallStreetBets subredditors started asking about DOGE, causing the subreddit followers to jump into trading it.

DOGE’s recent move was a classic pump and dump price action, with its price gaining over 100% in a matter of hours, before losing half of the previously made gains. However, the zone above the $0.0111 might become a solid consolidation zone for the cryptocurrency.

DOGE/USD daily price chart. Source: TradingView

DOGE’s RSI on the daily time-frame is quickly moving towards being overbought, but will most likely not reach that level due to its current price bounce. Its current value is sitting at 66.67.

DOGE/USD 1-hour chart. Source: TradingView

DOGE’s hourly time-frame shows us how the cryptocurrency skyrocketed, and what happened afterwards. However, due to the size of the pump, we cannot conclude much from this chart alone.

At the time of writing, DOGE is trading for $0.0103, which represents a price increase of 9.24% when compared to the previous month’s value.