Dogecoin Price Analysis: Bulls Coming back To The Party

Dogecoin Price Preparing For Taking Off From 50% Retracement Level
  • After Elon Musk announced accepting Dogecoin as the payment mode for Tesla, which surged Doge price by 150%
  • The rally was followed by a hiatus which led to a formation of flag and pole pattern
  • A successful breakout may ascend the doge price by 90% from current levels
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Doge price took a breather after the Elon Musk rally, which made a flag and pole pattern. The coin shows some new buying which is likely to give a breakout from the pattern, bringing a possible rally of 90%. The market cap and 24- hour volume are $6,528,541,680 and $3,322,140,037 respectively. 

DogeCoin Price Preparing For Taking Off From 50% Retracement Level

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Doge price has tested the 50% Fibonacci level in the last two sessions and has made a bullish spinning top candle. The decline saw the formation of multiple small bearish candles that indicates a partial profit booking and not exit of bulls. 

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The price is below 20EMA and 50EMA, which have given a bearish crossover but didn’t bring significant selling pressure in the script. The 20 EMA and 50EMA are potential resistance at $0.06 and $0.06. 

The coin is hovering in the Bollinger band’s negative territory but has taken support above the lower band, indicating a possible reversal in trend. The resistance is expected at $0.06(10EMA) and $0.078(Upper band) while the support has been tested at $0.045(lower band). 

The RSI is 53 and points towards consolidation or bull rally; the downward trend has been halted due to the fresh buying. The support of the indicator is at 50 and 40-43. The resistance could be at 70, 80 and 95. 

The MACD(8,21,5) has made a positive divergence as the signal line has stopped declining and is drifting towards the slow line, for a possible bullish crossover.

Conclusion – 

Dogecoin has made a lag and pole pattern and signalled a possible breakout in the form of a spinning top. The coin may surge by 90% if the pattern is successful. 

Support: $0.047 and $0.038(50% and 38.2% Fibonacci Level) 

Resistance: $0.0623-$0.065(10EMA, 20EMA and 50EMA); $0.056, $0.069 and $0.089(Fibonacci Levels) as well as $0.08(Upper BB) 

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Kartik Dhankanihttp://thecoinrepublic.com
Kartik Dhankani is a BAF Student based out of India and a stock market trader and Financial Analyst. He seeks to diversify his reach to different investment alternatives and analyse them using his knowledge for fundamental and technical analysis

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