Dogecoin emerged as a meme and soared over 24457% in the last 12 months marking an all-time high at $0.74. Being owned by a Billionaire like Elon Musk, the growth is not much surprising given his social media following and fame.
Dogecoin highly relies on fundamental news, hardly depends on technical analysis, and is pumped by Elon Musk tweets, every now and then. However, the importance of technical analysis can’t be overlooked. In the B Word Conference, Elon Musk revealed that he owns Bitcoin, Ethereum, and Dogecoin. The news has propelled all three assets, as a rejoinder. For technical Analysis let’s move to the price chart of dogecoin.
Dogecoin: Technical Analysis
It’s been more than a month since Dogecoin is moving under Exponential Moving Averages of 9 and 18 considering both the resistance making lower highs and lower lows on 1D timeframe. The price, however, broke once above the indicator but could not hold the position there.
The coin was moving in the downtrend channel mirroring best the bitcoin price movement and both broke the trend in the same manner. The vertical Yellow Shaded area shows the breakout with a huge volume spike which was strong and impressive on the H4 timeframe. We have the next local resistance area around $0.21 Green Highlighted area on the chart.
If Bitcoin continues the Hostile Bullish Trend, Dogecoin is likely to break the resistance and move to the upper resistance of $0.245. if the situation is otherwise, then it can jump back to the Blue shaded area of strong Buying to collect liquidity around $0.16 to $0.12.
In a nutshell, if there is fundamental news about dogecoin, we should expect a swift move accordingly than expecting it to respect any support and resistance or any indicator no matter what. To trade a strong fundamental coin like this one should trust more the news and technical analysis is the last thing to look at, not the least though.