Dogecoin reached another record high on Wednesday for apparently no reason but an ongoing boom across the cryptocurrency market ahead of Coinbase’s direct listing on the Nasdaq Stock Market later in the day.
The Dogecoin Rally Brief
The DOGE/USD exchange rate climbed to as high as $0.146 ahead of the London opening bell after breaking above a critical technical resistance level of $0.095. The pair’s climbed 54.75 percent to reach the record high at one point in time but later shed a small portion of its gains against a modest profit-taking sentiment.
The rally appeared alongside a similar boom across Dogecoin’s rival cryptocurrencies. That included Bitcoin, the top digital asset that also surged to a new record high just shy of $65,000. Ethereum — the second-largest cryptocurrency by market capitalization — also climbed to near $2,400, a record high, in the recent sessions.
Coinbase seems to have played a critical role in sending these digital assets upward.
The US-based firm is set to become the first cryptocurrency-enabled service to get listed on the Nasdaq Stock Market. The listing will take place after the New York opening bell Wednesday. It has led many analysts to anticipate broader upside gains across the cryptocurrency market, given Coinbase attracts more institutional investors to the sector.
But that does not explain Dogecoin’s explosive bullish response, given Coinbase does not even list the token’s pairs.
Emotionally Technical Outlook
Many still expect that the meme cryptocurrency would keep rallying upward, partially because it has strong moral backing from none other than Elon Musk, the founder of Tesla and SpaceX. Mr. Musk added $1.5 billion worth of BTC into Tesla’s balance sheets and started accepting the cryptocurrency for its line of electric vehicles.
“While everyone is talking about Bitcoin and Ethereum, [the] Dogecoin price jumps by 80.97% over the last 24 hours and gets closer to surpass the market cap of UNI and LTC,” said analysts at IntoTheBlock. “What’s even more impressive is that the Perpetual Swaps Volume for DOGE reached $15.15 billion today.”
Dogecoin is up more than 2,874 percent in 2021.
Technically, the DOGE/USD exchange rate has entered an alarmingly overvalued zone. The pair’s daily relative strength indicator (RSI) now returns a reading of 85.98, about 15 points above the acceptable threshold. That typically points to an imminent selling or consolidation sentiment. In either case, DOGE/USD should correct lower in the coming sessions.
If it does, the $0.095-level serves as primary support. If not, there is no level to guess an upside, given Dogecoin would be chartering into an unknown upside with no historical records.
Photo by Anastasiia Krutota on Unsplash