- DOGS crypto surged +20% on Wednesday following Durov’s release from jail.
- Can the uptrend momentum continue amidst weak market sentiment?
On Wednesday, the 28th of August, Telegram CEO Pavel Durov was released from a French jail, tipping most crypto projects linked to its messenger app to front a relief rally. DOGS crypto, a Telegram native memecoin, was perhaps the top-performing project after the Durov update.
It topped CoinMarketCap charts, jumped 22% in the past 24 hours, and was the top trending token on the tracking platform.
Source: CoinMarketCap
DOGS’ rally was more than double that of the second daily gainer and was the complete opposite of major drawdowns across top crypto tokens.
Durov boosted DOGS?
However, the Durov effect seemed temporary as the Telegram chief was only released from jail but banned from leaving France until further notice. It seemed the market has re-adjusted from the earlier euphoria witnessed across DOGS markets.
At the time of writing, the amount of Open Interest (OI) rates in the derivatives market declined by nearly 18% ($24M). This underscored a slight dip in the earlier bullish market sentiment as liquidity was withdrawn from the DOGS futures market.
It is worth noting that DOGS recently saw a surge in interest amid tier-1 exchange listing on Bybit, Binance, and OKX, amongst others. However, it declined by over 20% after listing on Binance earlier in the week.
So, the Durov release was just an added catalyst.
Source: Coinalyze
However, the spot CVD (Cumulative Volume Delta) fluctuated at the time of writing. The spot CVD measures the difference between buy and sell volume to further gauge market sentiment and traders’ position.
The flat spot CVD reading meant that DOGS’s buying volume was equal to its selling volume, a neutral position that signaled that DOGS’s price could move in either direction.
Source: DOGS/USDT, TradingView
On the price charts, DOGS traded at $0.0014 at the time of writing, slightly down from its recent high of $0.0016.
The 50% and 38.6% Fib levels were key short-term levels worth watching if the sentiment improves and DOGS attempts to reclaim its recent high of $0.0016.
Read DOGS Price Prediction 2024-2025
However, a sharp retracement to $0.0012 (78.6% Fib level) couldn’t be overruled if a weak sentiment extends.
However, this bearish outlook could be invalidated if Bitcoin [BTC] and the rest of the market recover and erase recent losses.
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