On Monday, Tesla CEO Elon Musk tweeted that he still won’t be selling his Bitcoin, Ethereum, and Dogecoin despite the rising inflation. The influencer’s words surged the DOGE price to around 10% high today. However, bullish sentiment wore off soon, and the altcoin was rejected by forming a long-wick candle. By the press time, the intraday gain struck to 3%.
Key points:
- The 20-day EMA poses dynamic resistance for Dogecoin’s price
- The 24-hour trading volume in the Dogecoin coin is $796,2 Million, indicating a 181.5% gain.
Source-Tradingview
A falling wedge pattern governs the Dogecoin(DOGE) price action. Under the pattern’s influence, the sellers have recently dumped the coin below the $0.135 monthly support. The gradual selling has tumbled the altcoin by 14.6%, nearing the bottom support trendline.
The DOGE/USDT pair surged 10% early on Monday in response to Billionaire Elon Musk’s tweet. However, this celebrity-driven rally didn’t last long and plunged below the descending trendline. The long upper wick attached to the daily candle indicates the buyers failed to sustain a higher level.
The featured image shows the dynamic 20-and-50 EMA emboldened traders in selling the rallies. The altcoin trading below the 100 and 200 EMA indicates an overall bearish trend.
Descending Trendline Pressurized The Bullish Recovery
Source- Tradingview
A stepper descending trendline leads the current bear cycle inside the wedge pattern. The long-wick rejection at this resistance trendline suggests the continuation of a bear attack. The sustained selling would sink the altcoin to the support trendline or $0.1 mark.
Alternatively, a breakout and closing above the stepper trendline would give the first sign to recovery and drive the coin price to $0.135 resistance. Furthermore, an escape from the falling wedge is necessary for expecting a genuine recovery.
The recent price jump has caused a minor depression in the rising ADX slope. However, the indicators maintain a bearish bias and will continue to rally higher if the sell-off resumes.
- Resistance levels- $0.115 and $0.135
- Support levels- $0.01 and $0.009
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/doge-price-analysis-doge-price-soars-10-to-elon-musk-tweet-break-0-135-resistance/