Yerevan (CoinChapter.com) – Dogecoin (DOGE) lost 94 percent of its value in the past month, congruent with losses across the crypto market. The DOGE/USD exchange rate was $0.33 ahead of the London session Wednesday. However, there are optimistic predictions for the meme crypto ahead.
Technicals behind the possible Doge bull
There are technical indicators to support an upward trend. For example, a prediction conducted by FXStreet sees the price ascending by 25 percent, based on the Fib Retracement pattern. The Fib Retracement levels are based on the Fibonacci sequence, predicting the future behavior of a stock or token. The indicator sees the price getting back to the $0.39 price margin in the upcoming sessions.
Dogecoin also sought assistance from the $0.32 level, which has proven significant in the past. The margin provided both support and resistance since mid-April. If the meme-coin manages to hold on, it could follow the Fib retracement pattern and reinstate its formal position at $0.39, right above the 20-day exponential moving average (EMA-20: blue wave on the chart below).
Moreover, Dogecoin has been trading in a descending channel since early May. The formation has two parallel trendlines with the same downward slope. The bottom line keeps the price from crashing, providing support. The upper trendline caps the shart bullish attempts, pushing the price back within the channel.
The pattern does not predict a pronounced bullish bias. However, one should take the trajectory preceding the channel into account. Doge logged significant gains before the descending channel. Combined with other indicators, the bullish continuation has merit.
Other bullish factors
A few prominent supporters famously propel Dogecoin. One of them is Elon Musk, the chief executive of Tesla and SpaceX, and the self-proclaimed ‘Dogefather.’ The billionaire tweets about the coin constantly, boosting the price. He went to propose a ‘master plan’ of making Doge “the currency of Earth” and the first coin on the moon.
The latter doesn’t seem absurd anymore, as one of SpaceX’s satellite launches (DOGE-1) was sponsored in Dogecoin, as announced back on May 12.
The recent mayhem on the crypto market had curious repercussions, as a “new space race” has apparently begun between Bitcoin and Doge.
Crypto exchange Bitmax has vouched to beat Dogecoin and send Bitcoin to the moon first. Crazy though it may seem, Bitmax plans to fashion a physical Bitcoin and send it to the moon surface in a commercial lander. Astrobotic Technology Inc., a Pennsylvania-based commercial space company, will send Bitcoin to the moon in the fourth quarter of 2021.
What does Mr. Musk have to say about the news? He answered in a tweet:
The billionaire entrepreneur might manage to boost the price of Doge as he has done many times before. Combined with technical indicators, the bullish trend gains more foundation. If the token holds on to the $0.32 price margin in the upcoming sessions, Dogecoin bulls might expect growing profit.