Dogecoin eyes ‘oversold’ bounce as DOGE cost surrenders 90% of yearly gains

Dogecoin (DOGE) shows the possibilities of having a strong cost rebound after reaching a tech support team confluence on May 12.

DOGE cost 25% bounce incoming?

DOGE’s 45% cost drop to $.065 now, or perhaps a 90% decline from the record a lot of $.76 last year, was met with decent buying sentiment. Consequently, the token went through a modest cost rebound on May 12, rising over 10% to $.078.

Interestingly, Dogecoin’s upside retracement move began near a confluence of two support levels: a multi-month downward sloping trendline along with a horizontal line that preceded a 335% cost rally within the week ending April 19 this past year.

DOGE/USD weekly cost chart. Source: TradingView

Meanwhile, the falling trendline is a part of a wider climbing down channel pattern. Its multiple retests as support within the last 12 several weeks propelled DOGE’s cost toward the channel’s upper trendline. When the pattern repeats, Dogecoin’s rebound will stretch toward top of the trendline near $.1, up almost 25% from May 12’s cost.

DOGE/USD weekly cost chart featuring ‘descending channel’ setup. Source: TradingView

The upside setup also picks cues from Dogecoin’s daily relative strength index (RSI), now near its oversold threshold of 30 — a buy signal.

On the other hand, a decisive move underneath the confluence support risks delivering DOGE to $.04, that has offered like a strong support level within the February–April 2021 session. That will mean another 40% cost decline prior to the next potential rebound.

Elon Musk versus. Fed

The most recent bout of promoting within the Dogecoin market coincides concentrating on the same sentiment within the overall crypto and traditional markets, brought through the Federal Reserve’s decision to tighten financial policy strongly to curb rising inflation.

Dogecoin, similar to its top-ranking rivals Bitcoin (BTC) and Ethereum (ETH), has additionally been hit through the panic round the de-pegging of two popular stablecoins: TerraUSD (UST) and Tether (USDT).

As DOGE holds above its tech support team levels, its next potential bull situation is the one and only Tesla Chief executive officer Elon Musk.

The millionaire investor, that has emerged among the most celebrated Dogecoin backers, lately bought Twitter for $44 billion. Prior to the acquisition, he’d recommended the Twitter board start accepting DOGE as payments for his or her first-ever subscription service Twitter Blue.

Twitter hasn’t revealed any intends to use DOGE for payments. But the possibilities of it happening could place a cost floor underneath the token within the coming days.

The views and opinions expressed listed here are exclusively individuals from the author and don’t always reflect the views of Every investment and buying and selling move involves risk, you need to conduct your personal research when making the decision.

Latest stories

You might also like...