The price of Dogecoin has spiked 54% as trading volumes soar amid a buying frenzy sparked by a viral Tik Tok video
Doge has hit levels not seen since October 2018; marking the highest price levels for the coin since surging to highs of $0.0068 of the September of that year.
TikTok sends DOGE/USD higher
After a video supporting Dogecoin hit social media and went viral, the price of the coin has vertically climbed upwards, according to Messari researcher and analyst, Ryan Watkins.
The spike is the biggest percentage recorded in crypto trading in a 24-hour period since the 2017 bull market, he tweeted.
Intraday trading volume has soared more than 2,000% as a result of the Tik Tok video, with a hashtag for the token on the Chinese-based video sharing platform attracting millions of ‘likes.’ Searches for how to buy Dogecoin have also hit new highs according to Google Trends.
Daily volume — which had not crossed the $5 million worth of trades in a day since early May — has increased to $1.3 billion. The coin’s market capitalisation has also increased to see the cryptocurrency rank as the 27th largest at $530 million.
Before the huge price surge, Dogecoin had registered a series of lower lows to trade at $0.00227 on July 5.
As of writing, the price of the token against the US dollar has climbed 52.22% to see it reach a high of $0.00542. The highest ever price mark for the cryptocurrency was $0.018 reached on January 7, 2018.
Bulls broke through multiple resistance levels with six straight green candles above the critical $0.0023 line. The upside faces crucial resistance levels at $0.0055, $0.00574, and $0.0061.
The four-hour charts suggest this could be the case, with the RSI still rising into overbought territory. Nonetheless, the subsequent retracement may halt if buyers hold support in the above zones; so achieving a daily close above $0.005 could offer a chance for a retest of higher levels.
However, if the uptrend runs out of steam, a return to long term resistance levels at $0.0023 will be possible. On the daily charts, immediate support is at $0.0051 and failure by buyers to regroup could open up declines to $0.00495.