- Dogecoin is expected to set up another bullish run in the short-term
- Dogecoin’s astounding rise to the top has been buoyed by amazing community support
Earlier in April, Dogecoin’s (DOGE) price traded to a new all-time high at $0.47 before declining on Apr. 23 to lows of $0.13. DOGE price has since recovered and remains bullish above the $0.30 support level. Dogecoin is expected to set up another bullish run in the short-term, but a confirmation above the $0.36 barrier is required to activate new buying orders. Alternatively, DOGE may consolidate in the next trading sessions, the flat RSI may suggest possible sideways trading.
Dogecoin has had an astounding rise to the top, buoyed by amazing community support and of course tweets from Billionaires Elon Musk and Mark Cuban. DOGE’s climb on Apr. 28 to highs of $0.36 was spurred on by Elon Musk’s tweet. Ranking 7th largest, it has a current market cap of $40.5 billion, with $3.98 billion in trade volume over the past 24 hours. At the time of writing, DOGE/USD was trading at $0.335, up 9.87% on the day.
SNL May 8
— Elon Musk (@elonmusk) April 28, 2021
LunarCrush social listening for cryptocurrencies, an app that measures how social media affects cryptos indicates strengthening social activity for Dogecoin. Giving a brief recap of how Dogecoin has performed in the last 6 months, LunarCrush indicated a growth of 11,878.21% in DOGE price, +3,610.06% in social engagements, and +3,426.84% in average daily social contributors.
Dogecoin 6-Month activity:
Price $0.3081994 +11,878.21%
Up to 59.68% social dominance
11,257,601 social mentions +2,568.35%
20,136,295,839 social engagements +3,610.06%
33,505 average daily social contributors +3,426.84%https://t.co/7XxMubmUBA $doge #dogecoin pic.twitter.com/gDKQpbAbOF
— LunarCRUSH Social Listening for Cryptocurrencies (@LunarCRUSH) April 29, 2021
DOGE/USD daily price chart: ranging
The daily chart of DOGE/USD indicates that the price recovered sharply after correcting lower to $0.13 and even spiked towards $0.36 on Apr. 28. DOGE then declined to lows of $0.296 in subsequent trading before starting a fresh increase on Apr. 30. The short-term oscillators are representing the latest rebound in the price but are yet to demonstrate an overly bullish outlook. The daily RSI though in the positive territory above 60 is attempting to improve past its current levels.
The DOGE/USD needs a sustained break above the immediate resistance level at around $0.36 before a bullish breakout and continuation towards $0.44 and even $0.47 becomes more likely. DOGE could continue to trade sideways in a range between $0.29 to $0.36 through the following trading sessions.
On the downside, there are many supports, starting with the $0.29 level. Any further losses may perhaps push the DOGE price towards the $0.22 support. There is also an ascending trend line forming with support at $0.135 on the same chart. The trend line support coincides with the moving average MA 50 at $0.136. Beneath this, the next key support is near the $0.068 level. The uptrend is invalidated if the DOGE price manages to break below $0.13.
- Supply Levels: $0.5000, $0.4500, $0.4000
- Demand Levels: $0.3000, $0.2500, $0.2000
Overall, the DOGE price is likely to set up for the next bullish break. A successful close above $0.36 could set the pace for a fresh rally in the near term.