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

dogecoin doge elon musk
Image by Giulia Legora from Pixabay
  • Dogecoin upgrade tweet and Elon Musk’s birthday. Enough incentive to raise the DOGE price by 6 percent
  • Dogecoin daily chart. Significant resistance and support levels.
  • What to expect from the meme-crypto in the upcoming sessions?

Yerevan (CoinChapter.com) – Dogecoin (DOGE), a meme cryptocurrency that recently popped to fame and profits after attracting support from Tesla CEO Elon Musk, barked its prices up by 6 percent following Musk’s tweet.

Ross Nicoll, one of Dogecoin’s developers, published a proposal on fee policy change. Musk noted that it was “important to support.”

Mr. Nicoll’s proposal to drastically reduce Dogecoin transaction fees fall into the CEO’s grand plan of making the meme-coin the “Currency of Earth.”

Patrick Lodder, another developer on the Dogecoin team, offered further details on the proposal in a Reddit thread.

This proposal to all Dogecoin stakeholders suggests to reduce average fees 100x for standard transactions on the Dogecoin chain, split full control over all aspects of fees between miners and node operators, rely less on core development, and bring back a functional (small) free transaction space that incentivizes keeping the network healthy.

Mr. Lodder commented.

Also read: Dogecoin jumps 90% in a Do-It-Yourself recovery rally

The ‘Doge army’ jumped on the news to pump the price as they concurrently celebrated Musk’s 50th birthday on Monday. In addition, they dished out memes in epic proportions, wishing the self-proclaimed “Dogefather” all the best.

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

Dogecoin daily chart

While the Dogecoin community was busy making up silly memes, the price margin of the 7th largest crypto made it up to $0.267, before correcting slightly down to $0.256 in the Asian-Pacific session Tuesday.

The token still traded within the descending channel it formed in early May. The parallel trendlines of the channel provided support for the sharp declines and resistance against breakout attempts. Dogecoin retested the upper trendline after the 6 percent gain on Monday and slipped south, unable to break the confluence of resistance.

Dogecoin gains 6% on Monday. Source: DOGEUSD on TradingView.com
Dogecoin gains 6% on Monday. Source: DOGEUSD on TradingView.com

The upper trendline of the channel wasn’t the only margin stopping Dogecoin. The token met the 20-day exponential moving average (EMA-20) wave, which capped the uptrend. If the meme-coin breaks above the EMA-20, it could seek an extended move towards the $0.32 bar and the 50-day simple moving average (SMA-50; the red wave).

Also read: Dogecoin demonstrating strong declines, weaker recovery tips bearish action ahead

What to expect?

The descending channel does not predict a solid bullish or bearish momentum. Should DOGE stay in the formation, it could face a loss of up to 40 percent. If it slips down to the lower trendline again, the price could stand at $0.150. However, if the token manages to hold on to the $0.23 support bar, it could break out of the descending channel pattern, expecting more gains.

The Shiba-Inu-inspired coin is volatile and dependent on the social media hype. The latest tweet from Elon Musk confirmed the paradigm and initiated a 6 percent jump. If past is any indication, Dogecoin will respond positively to further tweets from the ‘Dogefather’ and keep the candle green.

However, the descending channel on the daily chart offers a short-term bearish outlook. It suggests the token could fall back to the lower trendline, eyeing losses.

Also read: Bitcoin fails to attract new whales as BTC risks decline below $30K

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