Dogecoin Price Rallies Over 147% in 7 Days! Is it Too Much Too Soon?

This Dogecoin price rally might not last after the Twitter frenzy completely blows over!

According to coinmarketcap, the Dogecoin price is revolving around the US$0.14 mark, at the time of writing this article. Over the past couple of days, Dogecoin has been on a continuous rally, mainly because Musk's Twitter buyout closed successfully. According to reports, the Dogecoin price has rallied by over 147% within a period of 1 week. The Dogecoin price rally is definitely making investors extremely happy, but what happens when all this frenzy is blown over? Will the dark clouds of financial losses loom over the market again? Well, only time can answer these questions.

It is needless to mention that Elon Musk has a special relationship with Dogecoin. In fact, he envisions integrating DOGE for official payments on the Twitter platform. As the Dogecoin price rallies over 147%, the token has beaten the advancements of both the largest cryptocurrencies in the market, which have currently surged by only 8% and 17%, respectively. For an indefinite period, Dogecoin was stuck in a slumber and delivered little to no profits for its investors. In fact, when all the cryptocurrencies continued to decline, Dogecoin faced major blows since investors were dumping off riskier tokens, and being the flagship meme coin DOGE is plenty volatile. But now, Dogecoin has been deemed the top performer in the market and has eventually made its mark among the top cryptocurrencies by market capitalization.

For a long time, experts have discouraged investors from trading memecoins as they were only profitable for a short period and their values would eventually decline in the long term. Well, this is not entirely wrong, which is why investors are quite worried about the price movements of Dogecoin after the entire Elon's Twitter buyout deal will finally die.

How fast did Dogecoin rally after the Twitter deal closed?

Dogecoin's current ordeal clearly demonstrates that Elon Musk is extremely lucky for Dogecoin and its investors. Cointelegraph says that on October 29, Dogecoin's price surged by nearly 75% which is its highest until the token's inception. The coin's massive rally was a part of its previous value surge, right when Elon's deadline to close to Twitter deal neared. The rise was also accompanied by a decent hike in trading volumes. Santiment claimed that Dogecoin transactions exceeded by over US$100,000, besides, there is also a growing demand for DOGE among crypto whales.

Introduced in 2013, Dogecoin's growth has been quite stagnant mainly because it is an extremely volatile cryptocurrency and only spikes at times whenever Elon tweets about it. The coin has maintained an extremely low profile for quite a long period of time but Elon's massive acquisition is opening new doors for the token.

But is it too much too soon?

Musk's acquisition of Twitter bore positive results for Dogecoin, but being a volatile cryptocurrency, the price rally of the token is bound to calm at some point in time. Experts have weighed into a state that investors need to wait for a long period of time to understand the direction in which DOGE might be headed. Other memecoin values are set to a massive price rally as well, but this surge in value is mostly triggered by external factors. Even though the buying activity for all other cryptocurrencies is expected to continue, it would be in one's best interest to not completely rely on this price rally.