As soon as once more, the crypto world is abuzz immediately with one other surprising motion in Dogecoin’s (DOGE) value, because of a tweet from the enduring Tesla CEO, Elon Musk. This has grow to be a constant phenomenon, the place nearly each Elon Musk tweet hinting at or referencing Dogecoin prompts a flurry of exercise from DOGE fans, whatever the subtlety or directness of the tweet’s content material.
This morning, the catalyst for the sudden upswing in DOGE’s worth was a easy tweet from Musk. He shared a brand animation of the “X” brand, created by certainly one of Twitter’s most famed DOGE influencers, @DogeDesigner. Apparently, Musk shared the video with out remark, solely tagging DogeDesigner because the creator of the video. Nonetheless, this nod was sufficient to stimulate DOGE bulls into driving up the cryptocurrency’s value by a powerful 4%.
One other Elon Musk $DOGE pump!
#Dogecoin is up 4% due to this tweet from Musk.
— Jake Simmons (@realJakeSimmons) August 23, 2023
Dogecoin Worth Evaluation
But, it’s vital to delve deeper into the charts for a extra holistic view. Earlier than Musk’s tweet, DOGE confronted resistance simply shy of the 50 EMA on the 4-hour chart. As we’ve seen up to now, such sudden pumps might be ephemeral. At press time, Dogecoin was already giving again a few of its beneficial properties, standing at a mere 2% improve from the pre-tweet ranges.
However, the results of the tweet on the DOGE chart can’t be ignored. The 4-hour chart reveals that Dogecoin surpassed the 23.6% Fibonacci retracement stage as a consequence of Musk’s stimulus. The onus is now on DOGE fans to take care of the momentum and maintain above the $0.0626 value level. If achieved, there’s potential for DOGE to rally in direction of the 38.2% Fibonacci retracement mark at $0.666. That stated, traders ought to brace for appreciable promoting strain, particularly on the 78.6% Fibonacci retracement stage, which stands at $0.0732.
Trying on the increased timeframe, the 1-day chart paints a extra somber image for DOGE. Regardless of Musk’s newest tweet, Dogecoin stays ensnared in a persistent downtrend. This downtrend, outlined by a descending development channel, has been unwavering since December of the earlier yr.
Recalling latest occasions, DOGE confronted a rejection at this channel’s higher trendline in late July and has been on a gradual southward trajectory ever since. Alarmingly, key help ranges offered by the 200-day EMA and different vital shifting averages have been breached.
Given the current chart patterns, there’s a looming risk of DOGE revisiting its yearly low at $0.05593. In a worst-case situation, a slide to the descending channel’s decrease boundary at $0.053 is perhaps on the playing cards.
Nonetheless, ought to DOGE staunchly defend this key value stage, it may sign an attractive entry level for potential traders. For any significant restoration, will probably be crucial for DOGE to swiftly rebound from this low, ideally focusing on ranges above $0.058.
Featured picture from Twitter @Investments_CEO, chart from TradingView.com