When a token is created with the aim of having no utility or value except for what is ascribed by the market, its price action is largely dictated by supply and demand. When it comes to DOGE, its price action is highly narrative-driven. It produces quick and sharp moves to the upside, followed by a slow bleed to the downside.
All the major pumps in the last two years have been borne out of a prevailing narrative. The rally to $0.70 came in anticipation of Elon Musk going on SNL. However, that marked the top for DOGE, after which it retraced 78% within a couple of months. The next big pump came around the time Elon Musk officially took over Twitter. It was a sharp move of 170% to the upside, which was retraced entirely in the following months. Earlier this year, Twitter’s logo was changed to that of DOGE for a couple of days. This development sparked numerous rumors, which resulted in a relatively muted upside move to the tune of 40%. That said, the change was reverted, and with it, so was the price of DOGE.
From the above, it is quite clear that DOGE loves to pump leading into events and sell-offs right after.
But a physical DOGE coin is literally being sent to the moon in two weeks’ time, followed by the DOGE-1 satellite being launched sometime in Jan. 2024. These two events are arguably one of the most significant events in the DOGE coin’s entire history.
Also, most of the market participants have written off DOGE. But DOGE is the OG meme coin, and it usually pumps when most people least expect it to.
DOGE charted against BTC and broke below its multi-year lows, which usually leads to an accelerated downside. However, that was not the case this time around, and instead, we find DOGE grinding up against that lost support, which is more bullish than it is bearish. It is also reminiscent of LTC/BTC before it went on to have its halving pump.
Whether DOGE pumps leading into the event or not. When presented with simple trades with clear invalidation, there is little reason not to position yourself accordingly. Besides, if DOGE doesn’t pump leading into what can be regarded as one of the most significant events in its entire history, I don’t know when it would.
