The Elon Musk-led Dogecoin rally returns as DOGE jumps 15%

The Elon Musk-led Dogecoin rally returns as DOGE jumps 15%
Photo by Anna Shvets from Pexels
  • Dogecoin prices jump 15%, buoyed by solid buying pressure
  • Elon Musk is back to posting memes on the meme cryptocurrency
  • DOGE has been on an uptrend since July 20

JAIPUR (Coinchapter.com) – The cryptocurrency market logged 11% gains in the last 24 hours. Dogecoin (DOGE) didn’t stay behind either, and the meme cryptocurrency ended up rallying 15% over the previous trading session.

DOGE spot rates printed continuous green candles since the opening bell of the previous London trading session. Despite prominent analysts calling for bearish drawdowns, Dogecoin bulls bought Dogefather Elon Musk’s positive comments during the B-Word conference.

The top meme crypto-asset broke out of an almost month-long bearish technical setup on July 20 to post 32% gains to date. Elon Musk’s DOGE holding claim provided the impetus then and now during the latest 15% pump as well.

Related: Dogecoin jumps 21 percent on Elon Musk’s Twitter promotion

DOGE 4-Hour Technical Setup

Bearishness has haunted DOGE since the meme blockchain asset dropped from its all-time highs at around $0.75. The Elon Musk-supported cryptocurrency failed to attract buyers except during a few mini pumps orchestrated by the Tesla boss.

Related: Dogecoin pumps 6% on a single tweet from Elon Musk. Again.

But the technical setup from the 4-hour chart shows that bearish pressure on DOGE is waning. Investment interest in Dogecoin returned, as the gradual uptrend in RSI (Relative Strength Indicator) numbers from July 17 shows. RSI tapped the upper bound at 70 during the latest rally.

The last time it happened, the DOGE/USDT pair attempted a recovery after the May dump and registered a local top at $0.45 before declining again. While the market sentiment then was overly bearish and indicated at overbought conditions, the situation this time is different.

Amid Amazon’s rumored move to let customers pay using cryptocurrencies, bullish sentiment has returned to digital asset markets.

Dogecoin bulls have managed to keep the token afloat over the crucial 20-day exponential moving average (EMA) wave since July 21. Moreover, the current 15% upshot ensures that it will continue to stay in the near term. Nonetheless, sellers have lined up to book profits.

Dogecoin breaking out of a month-long bearish setup, Source: DOGEUSDT on TradingView.com
Dogecoin breaking out of a month-long bearish setup. Source: DOGEUSDT on TradingView.com

Price Levels To Watch

Dogecoin buyers managed to pull prices north of the 0% Fibonacci extension level ($0.2) close to the 78.6% Fibonacci extension level. Even with sellers joining the party, bulls still have the upper hand and could very well lead the rally above the 100% Fibonacci extension level ($0.24) to the 161.8% Fibonacci extension level ($0.26).

DOGE looks primed for another bullish upside. Source: DOGEUSDT on TradingView.com
DOGE looks primed for another bullish upside. Source: DOGEUSDT on TradingView.com

If sellers manage to assume control at all, the DOGE/USDT pair could drop down to the 61.8% and 78.6% Fibonacci retracement levels, which coincide with $0.19 and $0.18 spot rates, respectively.

How useful was this post?

Click on a star to rate it!

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com