Dogecoin (DOGE) has resumed its hot streak, soaring by over 60% in the past 36 hours to now trade at 67 satoshi ($0.00032). It is DOGE’s highest level in 3 months.
Volume has been the highest amongst altcoins. Over $2.1 million worth has been traded during the past 24h, slightly more than Litecoin.
The rise has been propelled by Dogecoin on its own, without help from the broader market. Bitcoin and Litecoin are virtually unchanged during the period.
The catalyst behind the trading activity has been the commencement of Dogecoin’s merged mining with Liteccoin, which reportedly also accommodates for other Scrypt-based coins. When first proposed by Charles Lee in April, the concept seemed outlandish and was passionately opposed by many in the Dogecoin community.
Lee had argued that merged mining would make hashing operations more efficient and increase the chances of profitable mining. In addition, the greater hashpower serves as a strong defense against a potential malicious attack launched from a large mining pool.
In eventually relenting and accepting the proposal, it has been said that the community has waived some of its Shibe pride to do what’s best for the coin’s future. There are some, though, still bitter about the decision.
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In addition to snowballing effects contributing to the rise, a “Dogeparty” quasi-currency has been announced whereby dogecoins are burned in an effort to lower supply, therefore placing upward pressure on the price.
Dogecoin is now trading at a 116% premium to its 50-day moving average (MA). It has now traded above this MA for 10 days straight. Both feats are their largest since the February rally.
DOGE had languished in the low-mid 20’s for a lengthy stretch, giving ample time for its MA to catch up and nearly converge with the traded price. DOGE briefly broke above the MA for the first time since May during its first jump to 35 satoshi in late August. The 2nd breach occurred 10 days ago as it proceeded to a high of 47 satoshi and remained above the MA even when falling back to 33. Cumulatively, the behavior confirms that the August doldrums were indeed a bottoming out to be followed by a recovery, at least in the mid-term.
Total gains since the bottoming are close to 200%. However, it is still over 70% off from the February peak of over 300 satoshi.
Dogecoin has now padded its distance from Peercoin in market cap rank, sitting in 6th, 3rd among mineable currencies. Its total worth is now $26.5 million.