The financial markets witnessed a rally in meme stocks, marked by the re-emergence of Keith Gill, better known as Roaring Kitty, on social media.
Observers keenly anticipate this renewed interest for its potential to mirror effects on cryptocurrencies like Dogecoin (DOGE).
Dogecoin and the Return of the Meme Stock Mania
Roaring Kitty’s return saw GameStop and AMC stocks skyrocket by over 70%, reminiscent of the trading frenzy of 2021. This spark has reignited interest in meme coins, potentially signaling bullish outcomes for the $52 billion sector.
The connection between the resurgence of meme stocks and meme coins is based on historical market behavior. The monumental rise in meme tokens seen in 2021 was driven by a similar trading phenomenon. Back then, the increased trading activity in meme stocks led by Gill spilled over into the cryptocurrency market.
Dogecoin holders now hope for a strong upward trend similar to the 2021 bull rally.
“You remember what DOGE did in 2021 after the GameStop GME Squeeze?,” a Dogecoin aficionado said.
Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Market analysts now observe Dogecoin’s trajectory as it approaches critical technical levels that could dictate its short-term movement.
For instance, the 20-day Exponential Moving Average (EMA) at $0.149 is a key level for investors to watch. Anchoring above this barrier could set the stage for a rally toward the 50-day Simple Moving Average (SMA) at $0.166. If the trend remains, the DOGE price could march toward $0.210.
However, falling to hold the crucial support at $0.149 will result in a price correction toward $0.120.
Investors must watch these levels closely because the excitement from 2021’s meme stock rallies can boost Dogecoin and other meme coins, possibly driving them to new highs.
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