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.
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.
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.
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.