Meme-inspired cryptocurrency Dogecoin (DOGE) is experiencing a renewed surge, largely driven by the continued support of its prominent advocate, Elon Musk. Following Musk’s recent social media activity, DOGE’s price has seen a significant uptick, underscoring his substantial influence on the coin’s value.
Musk’s Impact On DOGE
Historically, Musk’s social media posts have had a profound impact on DOGE’s price. Previous instances have resulted in price increases of up to 23% and even a dramatic 900%. With the current price hovering around $0.104, investors are hopeful that Musk’s continued backing may lead to another substantial rally.
Technical Analysis Indicates Bullish Trend
Analysts are cautiously optimistic about DOGE’s future performance. Pseudonymous trader Dylan has identified a key breakout on the DOGE price chart, particularly around the $0.102 level on a 4-hour timeframe. This breakout could signal a reversal from the recent downward trend, suggesting a potential bullish rally.
Dogecoin Price Forecast
Forecasts for DOGE suggest a positive bullish trend ahead. The recent breakout from a falling wedge pattern, which began in early August, hints at increased bullish momentum. This is further supported by the recent candlestick pattern indicating a strong upward move from a triangle formation, a classic bullish signal following consolidation.
Resistance is expected around $0.1059, aligning with the upper Bollinger Band. If DOGE surpasses this resistance, a potential surge to $0.1274 (approximately a 22% increase) is anticipated. Price action near the upper Bollinger Band indicates strong momentum. If DOGE maintains its position at or above this band, it could suggest continued bullish pressure. Additionally, contracting Bollinger Bands point to a period of low volatility, which often precedes a significant directional move.
Also Read: Dogecoin Soars 4.65% -Can It Break The 20 Cent Barrier?
Dogecoin is currently near its 20-day moving average of $0.10563, suggesting that the recent rise might be sustainable. The Coppock Curve, a momentum indicator, is currently at a positive 3.02571, reinforcing the upward trend.
As long as DOGE remains above the critical support level of $0.0995, its outlook remains bullish. However, a decline within the triangle formation could signal market weakness, potentially pushing Dogecoin down to $0.0985 or even $0.0800.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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