Dogecoin prices soar to new highs in months: Reasons behind analysis

Bitcoin 's rally helped the entire crypto market to warm up, with Dogecoin ( DOGE ) becoming one of its most eye-catching coins. The earliest memecoin climbed above $0.10 psychological barrier on Monday and set a new high since June.

News of the X Platform collaboration sparks controversy

The immediate catalyst for this round of activity came from the X platform. On the previous day, X announced a new trading partnership with Gemini , Kraken , Coinbase and Moomoo as well as Interactive Brokers, where users will be able to complete transactions directly in the timeline via cashtag tags.

Leverage dominates the market

On the day of trading, DOGE opened at $0.0999, surged to $0.1059, followed by a reversal. The price fell back to $ 0.0992, with an all-day gain of 0.62%. This is typical for bullish news that stimulates ups and downward momentum, although it successfully breached the barrier of $ 0.10, but could not hold until closing.

It should be noted that this is not a stand-alone situation for Dogecoin . PEPE and Shiba Inu ( SHIB ) have gone strong at the same time, with the entire memecoin sector benefiting from capital rotation. Derivatives data shows that Dogecoin 's outstanding contracts jumped by about 10% in one hour to around $350 million.

Technical indicators are mixed.

From a sun-line perspective, the relatively strong RSI is currently at 69.4, much closer to 70 that traders are beginning to be wary of overbought dividing lines. The average trend index (ADX) readings are 32.5, above 25 for trending effective thresholds and with multiple parties (+DI) still dominating. The Squeeze Dynamic Indicator has been closed indicating that the previous setup was released upwards; although dynamics remains slightly biased, the curve is turning upward as the market seems more like it's taking a deep breath than reversing the trend.

However, there is still an unsolved problem: the 50-day index moving average (EMA) of Dogecoin remains below the 200-day EMA. This is a textbook dead fork that belongs to long-term bearish signals, which are usually formed after a continuous downward trend.

All in all, the upswing was real but it happened under a technical structure that is still blank on paper and will take time to verify.

Disclaimer of liabilityNote: This article is for informational purposes only and does not constitute any financial, investment or other advice.