Dogecoin Price Analysis: Why DOGE Coin Surged 30% Today, And Should You Enter?

The DOGE coin price is still under a short-term downtrend that even broke crucial support of the $0.16 mark yesterday. However, today the price is up 30%, which is most likely caused by the billionaire Elon Musk’s tweet, which says, “Tesla will make some merch buyable with Doge & see how it goes.”

Key technical points:

The DOGE coin gives a fakeout from the $0.16 support
The intraday trading volume in the DOGE coin is $5.39 Billion, indicating a 660.5% gain.

Source- DOGE/USD chart by Tradingview

The last time when we covered an article on DOGE/USD, the coin displayed a steady downfall which plunged the price to the $0.2 support. Though the price was trying to sustain above this level, the overpowered sellers breached this bottom support, continuing the red rally in the DOGE coin.

Yesterday, the technical chart indicated more bearish sentiment for this coin as it broke down from another crucial $0.16, which previously initiated a remarkable rally on June 21. However, Elon Musk’s tweet flipped this breakdown into a fakeout, displaying a huge green candle with a 30% gain in the intraday session.

The DOGE coin price is still trading below the crucial EMAs(50, 100, and 200), indicating a bearish trend. Moreover, the daily Relative Strength Index(52) displayed a similar boost in its value and has jumped above the neutral zone.

DOGE/USD 4-hour Time Frame Chart

Source- DOGE/USD chart by Tradingview

In this lower time frame chart, the sudden pump in DOGE coin price has breached some significant resistance levels, the descending resistance trendline, the 200 EMA line, and a horizontal resistance zone of $0.2-0.195.

The price is currently retracing back to these levels, and the crypto traders could grab an entry opportunity if the price shows enough sustainability above these levels.

However, they should strictly follow their risk management as the overall trend of the coin is still bearish.

The post Dogecoin Price Analysis: Why DOGE Coin Surged 30% Today, And Should You Enter? appeared first on CoinGape.

Source: https://coingape.com/95351-2/

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