- Dogefather tweeted again, but the meme-coin boost effort was fruitless.
- The daily chart still indicated the relevance of the descending channel formation
- High dependence on the Twitter hype
YEREVAN (Coinchapter.com) — Dogecoin (DOGE) is famously dependent on the Twitter activity of its biggest proponent Elon Musk, the chief executive of Tesla and SpaceX. However, it looks like the pet-crypto grew up and stopped responding to the ‘Dogefather’s calls.
The billionaire once again tweeted a meme in support of his favorite crypto. He posted a picture of Marlon Brando as the Godfather. However, the tweet did not have the usual explosive effect, as Dogecoin stalled like a stubborn teenager.
DOGE/USD exchange rate stood at $0.25 in the European session Thursday, after consolidating around the said price margin for over 4 sessions.
No reaction from Dogecoin
The token still traded in the descending channel formation that was initiated in early May. The lower trendline assisted on multiple occasions, while the upper trendline capped breakouts.
DOGE retested the channel’s upper trendline again on Thursday and corrected the trajectory downward, unable to break the confluence of resistance. In addition, the 20-day exponential moving average (EMA-20) also halted Dogecoin’s attempts to break out of the formation.
Mr. Musk’s tweet failed to “release the doge” from the descending channel. However, the token successfully retested the $0.23 price bar as support and didn’t fall back to the channel’s lower trendline. Thus, if DOGE manages to hold the said margin, it might exhaust the formation and attempt a bullish break.
… usually reflect on his pet crypto’s daily charts. On April 1, 2021, when Mr. Musk tweeted about his plan to put “a literal Dogecoin on the literal moon.” The price spiked 40 percent before correcting downward.
On a separate occasion, on May 7, the DOGE price gained 43 percent, as the CEO tweeted a behind-the-scenes shot of him filming sketches for the Saturday Night Live show, which he was scheduled to host on May 8.
On May 24, Mr. Musk urged his followers to brainstorm ideas on Dogecoin development in a subreddit. The tweet resonated with his audience and ensured a 27 percent gain.
It looks like the dependency on Mr. Musk’s tweets has subsided, as Dogecoin’s price didn’t respond to the latest Godfather tweet. Unfortunately, the technical indicators influencing the token can’t predict the upcoming trajectory with any certainty. The descending channel does not carry a pronounced vector.
However, DOGE might exhaust the formation if it holds on to the $0.23 support margin and breaks above the EMA-20. The DOGE/USD exchange rate still stood at $0.25 in the London session Thursday.