Dogecoin (DOGE) Price Spike Is Not What You Might Think: Crypto Market Review, October 5

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$DOGE most recent 8% price spike does not have anything behind it, which is why half of yesterday's growth is already gone

we saw yesterday might be in its final stages, considering the state of most digital assets we are seeing today. Even a strong price performance on assets like DOGE does not seem to have a strong foundation beneath it.Despite the strong 7% price increase we saw yesterday, Dogecoin is not showing any signs of a noteworthy breakthrough and is already losing more than half of its value in today's trading session.

The problem with the current price increase is the main reason behind it, which is the potential finalization of Elon Musk's Twitter purchase. Previously, some crypto enthusiasts suggested that Musk would bringHowever, according to court documents, Musk does not think implementation of digital assets on the platform is a good idea considering all the congestion and security issues digital asset users face outside of mainstream platforms.

The lack of fundamental support and questionable growth fuel creates an immediate profit, taking on the memecoin, which is why we are seeing a return below the exponential moving average. From a technical standpoint, Dogecoin will continue to move in the prolonged consolidation channel formed back in June. In the long term, DOGE moves in a sharp downtrend since 2021 and, unfortunately, shows no signs of a reversal since April of this year.

 

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