This Price Level Can Be Messiah For Dogecoin’s Bullish Momentum! But There Is A Twist To Watch Out

The post This Price Level Can Be Messiah For Dogecoin’s Bullish Momentum! But There Is A Twist To Watch Out appeared first on Coinpedia Fintech News

Dogecoin has been a dominating memecoin in the crypto market since its inception in 2013. However, the crypto winter has created turmoil in the price of several cryptocurrencies, resulting in a 91.8% loss in Dogecoin’s all-time high of $0.73.

Dogecoin has been trading in a consolidated area with a bearish momentum since last week. However, it is now getting some positive price action following Elon Musk’s Twitter acquisition proposal. 

Dogecoin Price Is Indicating Bullish Reversals Due To Elon Musk!

Dogecoin has been unsuccessful in bringing a ray of positive hope to investors since achieving its all-time high of $0.73 in May 2021. For the last three months, Dogecoin has been aggressively trading in bearish territory, and it looks like the memecoin is facing trouble even to make a breakout to the North. 

However, Dogecoin has been witnessing an uptrend since yesterday from a low of $0.05509 due to Elon Musk’s involvement in his favorite cryptocurrency again, as users will be able to buy his newly launched fragrance product, Burnt Hair. According to CoinMarketCap, Dogecoin is currently trading at $0.06031 with a rise of 6.6%. 

Dogecoin’s Next Price Action To Watch Out

Dogecoin, inspired by the concept of another popular memecoin, Shiba Inu, started plummeting due to the crypto market trend, which dragged major cryptocurrencies to the bottom of the price graph. 

The daily chart of Dogecoin price shows that the Bollinger band’s lower limit is at $0.055, which is a crucial support level. If Dogecoin fails to hold its momentum above this level, it can soon fall to the price of $0.048.

Dogecoin can initiate a mini bullish reversal from $0.048, as indicated by the EMA-20 and EMA-50. According to our Dogecoin price technical analysis, it can again make an attempt to break the immediate resistance level at $0.06266. 

The current price action and Elon Musk’s influence can push Dogecoin to $0.065, but it may be short-lived as the RSI-14 is trading below the 50-level, hinting at a price of $0.05 in the next few trading sessions. To invalidate the bearish analysis, Dogecoin needs to trade above $0.065 for the next couple of weeks before initiating a smooth bull run.

However, the current price action may lure investors into buying a significant volume of DOGE and selling later, which can result in a nightmare for Dogecoin’s future price as it can make a breakout on the downside at $0.047 and soon witness a sharp fall to $0.025 with a 42% decline. 

The price is expected to worsen following several market factors and the bearish trend of the crypto market. If Dogecoin comes over any negative news and gets impacted, the price can further drop and trade below $0.01. Therefore, it is advised to investors to do their own research and conduct experts’ opinions and investment advice before investing in the current volatility situation.