Crypto News

Gains Ahead For Dogecoin? This Technical Indicator Suggests So

Is Dogecoin Charging Towards Half a Dollar Valuation? This Indicator Shows So
Image by alektas from Pixabay

Yerevan (CoinChapter.com) – Dogecoin (DOGE) traded at $0.30 in the early European session Monday, as it lost another 9 percent since May 27. However, a technical pattern suggested a change of trend for Dogecoin in the upcoming sessions.

What is it?

Dogecoin’s daily price chart has formed a pattern called a falling wedge. It consists of two sloping trendlines.

The support line prevents the price from sharp breakdowns, and the upper resistance line caps breakout attempts. If the trading sessions preceding the formation were bullish, the continuation pattern suggests another bullish breakout after the wedge. Doge could see a price margin at approximately $0.80 in June, a new all-time high for the meme coin if the indicator pans out.

Dogecoin on the verge of gains, according to the falling wedge pattern. Source: DOGEUSD on TradingView.com
Dogecoin on the verge of gains, according to the falling wedge pattern. Source: DOGEUSD on TradingView.com

Read more: Top Macro Investor Confesses He Owns Dogecoin

Dogecoin Promotion

Just when traders think they have seen it all when it comes to Doge, the meme token gets another ridiculous mention on Twitter, that leaves them puzzled. After the following tweet, and a reply from the ‘Dogefather’ Elon Musk, the price had another slight jump.

Read more: Elon Musk’s Dogecoin Adventures Could Leave Bitcoin in Legal Trouble

Dogecoin, Gains Ahead For Dogecoin? This Technical Indicator Suggests So

It goes to show, that Dogecoin benefits not so much from the meaningful content of the tweets, but more from the sheer volume of them. While the tweet above obviously has a humorous pretext, many Dogecoin supporters showed excitement and ‘spread the message’.

Mr. Musk has been vocal before about making Dogecoin the “currency of Earth”, and the “first coin in space”. The latter is going to become a reality very soon, as SpaceX is preparing to launch a mission entirely paid for in Doge.

Read more: Elon Musk Prepares Dogecoin to Challenge Bitcoin — DOGE Recovers

Dogecoin is the 7th largest cryptocurrency as of the moment, with a market cap of $40 billion. Despite the noticeable decrease in transaction volume on the Dogecoin blockchain, the token still has a chance to get back on its feet.

If the falling wedge technical pattern pans out, Dogecoin is looking at serious gain in the upcoming sessions.

The price could surge as high as $0.80. However, the climate on the market is not reassuring. After the devastating losses, Bitcoin still consolidated around the $36,000 price margin. The same goes for Ethereum, the second-largest crypto. Despite the efforts, it struggled to break over the $2,700 margin with any confidence. Ether traded at $2,484 in the London session Monday.

Read more: Bitcoin Could Crash Back to $20,000, Analyst Asserts

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Lilit Chichyan

Lilit is an enthusiastic writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Lilit is creative and fast and has the experience of writing for both big marketing companies and small websites and blogs.

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