As a seasoned analyst with years of experience under my belt, I’ve seen market trends come and go like the tide. However, the recent surge in Dogecoin (DOGE) price, fueled by none other than Elon Musk and Donald Trump, has certainly caught my attention.
On the weekend, when market activity was relatively subdued, Dogecoin‘s price experienced a minor 0.12% increase to reach $0.095. This growth coincided with a broader market uptrend. Interestingly, as billionaire Elon Musk posted about the Department of Government Efficiency using the acronym D.O.G.E on social media platform X, the DOGE price briefly rebounded from its $0.09 support level. However, it’s unclear whether this recovery will be sustained due to Dogecoin approaching a significant resistance level that it has been unable to surpass for several months.
Dogecoin Price Climbs on Trump-Musk Collaboration
He intends to create a joint initiative with Elon Musk (Tesla’s founder) focusing on improving government efficiency.
Endorsing this suggestion, Elon Musk has vigorously advocated for the establishment of a Government Efficiency Commission focusing on X (previously recognized as Twitter), expressing his support through a post that features an AI-created image depicting him alongside the acronym D.O.G.E.
On Friday, the tweet caused an immediate surge in the value of Dogecoin, pushing it up to a peak of $0.095. Yet, this rapid increase might not be long-lasting since the asset is currently near a prolonged resistance trendline around $0.1, potentially making further growth difficult.
Based on data from Intotheblock analytics, it’s possible that potential buyers might encounter pressure due to around 16 billion DOGE held in approximately 242,800 addresses before the price reaches $0.1. As previously noted, these holders are currently experiencing a loss and may choose to sell their tokens at breakeven point.
DOGE Price Awaits Major Breakout
For the past month, the value of Dogecoin has fluctuated between $0.115 and $0.091 at stable points. This period of little movement could indicate that neither buyers nor sellers are eager to enter the market yet. However, a closer look at the overall chart reveals the emergence of a falling wedge formation.
The graph shows a gradual decline in price between two lines that are moving towards each other, known as a converging chart pattern. This is typically followed by a significant breakout initiated by buyers. As of now, the Dogecoin (DOGE) price stands at $0.095, and its market capitalization has grown to an impressive $13.9 billion.
If the positive trend continues, the price of the coin might rise by 5% before encountering significant resistance from an upper trendline. However, if sellers manage to hold their ground at this active resistance level, the Dogecoin price may drop and strive towards the $0.08 support level.
Additionally, the dog-themed coin’s price movement seems to be trending under its Exponential Moving Averages (EMAs) of 20, 50, 100, and 200 days, suggesting that it may encounter resistance as it moves lower.
Instead, if there’s a strong surge (bullish breakout) from the wedge pattern, it could significantly boost the positive trend for Dogecoin. This might lead to predictions of its price reaching approximately $0.11, and potentially even rising further to around $0.144.
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2024-09-09 00:28