The Dogecoin (DOGE) price rally extended further on Oct. 29 in hopes that the cryptocurrency would get a major boost from Elon Musk’s Twitter acquisition.
Elon Musk boosts Dogecoin price again
Dogecoin price jumped by nearly 75% to reach $0.146 on Oct. 29, the biggest daily gain since April 2021.
DOGE/USD daily price chart. Source: TradingView
Notably, the meme-coin’s massive intraday rally came as a part of a broader uptrend that started earlier this week on Oct. 25. In total, DOGE’s price gained 150% during the Oct. 25-29 price rally.
The surge was also accompanied by a decent increase in its daily trading volumes. That coincided with a spike in the number of DOGE transactions exceeding $100,000, according to Santiment. Both indicators sugges a growing demand for Dogecoin tokens among rich investors, or so-called “whales.”
Dogecoin whale transaction count. Source: Santiment
The jump across Dogecoin’s key metrics reflect investors’ excitement about Elon Musk’s Twitter acquisition on Oct. 27. Earlier this year, the billionaire entrepreneur had flirted with the idea of making Dogecoin a payment method to purchase the Twitter Blue subscription.
Musk’s Tesla and SpaceX already accept DOGE payments for their merchandise.
$DOGE, the official currency of Twitter.
— David Gokhshtein (@davidgokhshtein) October 28, 2022
Shiba Inu, meme-coins follow DOGE
Shiba Inu (SHIB), the second-largest meme token by market capitalization, posted a copy-cat rally as well.
On Oct. 29 alone, SHIB’s price jumped by 30% to $0.00001519, its highest level since August 2022. Like Dogecoin, Shiba Inu’s rally came as a part of a broader uptrend that started on Oct. 25. Since then, its price has gained 53%.
SHIB/USD daily price chart. Source: TradingView
Additionally, other meme coins have jumped massively in the said period, including Dogelon Mars (ELON), which rallied 140%.
Meme coins performance on hourly, daily, and weekly timeframes. Source: CoinMarketCap
Dogecoin most overbought since April 2021
Dogecoin’s ongoing price rally is starting to look overstretched, however, according to a classic technical indicator.
The relative strength index…