Dogecoin (DOGE) and Shiba Inu (SHIB), nicknamed meme-coins, jumped more than 150 per cent and 30 per cent, respectively, in the last seven days after Elon Musk, a known supporter of these cryptocurrencies, took charge as the chief executive officer (CEO) of social media company Twitter Inc.
Dogecoin And Shiba Inu Rally
The Dogecoin’s gains continued last week in hopes that it would get a major boost from Musk's Twitter acquisition. "A massive intraday rally came as a part of a broader uptrend that started on October 25," says Amanjot Malhotra, country head of Bitay, India.
Shiba Inu, the second-largest meme token by market capitalization, also posted a copycat rally. "However, according to a classic technical indicator Relative Strength Index (RSI), Dogecoin 's ongoing price rally is starting to look overstretched," added Malhotra.
RSI, a momentum indicator that follows price changes to analyze overbought or oversold levels, has risen to 93.69 on the daily Dogecoin chart. It is the highest level since April 2021. A month before, the DOGE price rallied to its record high of $0.75.
Malhotra noted the rally might not last long as it has been pushed up mostly on perception. “We have to wait for a long time to see if these meme coins will actually see any demand from Twitter,” he said.
Besides SHIB, altcoins like AVAX and ATOM also witnessed price gains. AVAX was up 4.8 per cent. "The traditional markets are showing early signs of recovery with central banks signaling relaxed monetary policies to balance the economic equilibrium. The buying activity across traditional and digital assets is expected to continue if macroeconomic factors remain favorable," says Shivam Thakral, CEO of BuyUcoin, an India-based crypto exchange.
Dogecoin is up 23 per cent in the last 24 hours. It was trading at $0.1483 at 4:00 pm. At the same time, Shiba Inu was trading at $0.00001299, up 5.90 per cent in the last 24 hours.
Like Bitcoin, Dogecoin works on the older proof of work consensus mechanism and requires participants to solve complicated computer equations for rewards. Dogecoin’s closest rival is Shiba Inu, but it runs on the ERC-20 framework and is hence not a cryptocurrency; instead, it is a crypto token.
