Dogecoin rallies 84% in a week: TikTok meme triggered a buying spree

Dogecoin has rallied over 84% in just seven days amid a Bitcoin market consolidation. In less than 48 hours the price of the cryptocurrency that is associated to a rather controversial meme hit highs of $0.0060 from levels marginally below $0.0025. While gains towards $0.01 became difficult to sustain, DOGE/USD is containing the gains above the short term support at $0.0040.

At the time of writing, Dogecoin is valued at $0.0042 while flirting with the 50% Fibonacci retracement level taken from the last swing high at $0.0060 to a swing low of $0.0026. Consolidation seems to be taking over with the RSI clinging to the midline (50). The indicator has retreated from highs around 95 seen on Wednesday. As long as the RSI holds the current position, there a chance that the sideways price action would last longer.

On the other hand, it is essential to realize that the MACD is falling toward the mean line. It also features a negative divergence which highlights the strengthening bearish grip. Therefore, bulls must target to establish higher support, preferably above $0.0040.

DOGE/USD 1-hour chart

TikTok sends Dogecoin to the moon

A TikTok meme has been linked directly to the ballistic Dogecoin price action. Dogecoin easily became the tenth most bought and sold cryptocurrency on Wednesday. Its trading volume hit the $1 billion causing the crypto to double in price in less than a week. The rally is said to have been triggered by a viral TikTok video that encouraged people to invest in the cryptoasset. The viral video also extended to tweet pushing DOGE mentions to yearly highs.