DOGE price is trading at $0.1657, with daily losses of 3.27% and weekly gains of 18.87%.
Today it is declining, but in the last day the price of DOGE showed a significant increase of up to 8%, likewise, in the previous two days the price showed significant gains and thus setting up a three-day rally of important gains.
The motivations behind this rise can be found mainly in the bullish streak that Bitcoin is currently experiencing with its approach to its all-time high.
As the price of BTC settles above $70,000, it makes room for sectors of volatile altcoins to experience increases, as is currently the case with the memecoin niche.
Another factor that is driving the memecoin market higher is Elon Musk, the CEO of Tesla, who is touring the United States promoting Donald Trump’s campaign. This campaign inspires the appearance of a large number of meme coins.
Musk, who is the richest man in the world according to the Forbes list, has already promoted a large number of meme coins in the past. Today, in the same way, he promotes the sector by interacting with Donald Trump, a candidate considered pro-cryptocurrencies.
On the other hand, we can also mention that this rise is supported by whales and institutional actors, since on-chain analyzes show an increase in their activity. So most likely Given the rise of Bitcoin, whales seek to accumulate minor cryptoassets such as DOGE.
Analysts Predict a Big Rally for Dogecoin
Before carrying out our usual technical analysis, it is worth highlighting some important analyzes such as that of the
“DOGE is within sniffing distance… the dog can smell the ripe fruit.”
To interpret the analyst’s words, we must point out that it is indicating that Dogecoin (the dog) is approaching a banana zone (the ripe fruit). At the same time, it should be noted that a banana zone is a strongly bullish streak.
The graph also shows that the meme coin is completing a bullish flag pattern, which began in 2021. Precisely in that year the price reached a maximum of $0.75 and today, 3 years later, it could be about to reach said zone. , according to Pal.
Other short-term analysis shows that the price is moving in a descending megaphone pattern, which could culminate with an upward breakout that positions DOGE at $0.2.
However, at this point it would be good to point out the key levels according to our criteria and that is what we will do next.
Key levels to consider regarding DOGE
The price of Dogecoin is trading above the 20, 50, 100 and 200 EMAs, which can be interpreted as a bullish signal and in this context, also a trend change signal. All EMAs move in harmony and in descending order from low to high, which reflects the strength of the trend.
However, the price is having a hard time conquering the resistance at $0.18, but if it manages to reach it, it could head towards the major psychological resistance at $0.20.
Regarding supports, we can mention the $0.161 level or the 20 EMA level, which represents the current momentum. The price would find strong support at $0.14 or the 100 EMA level.
The strongest floor is at the 200 EMA level or $0.129. This level, along with the 100 EMA, delimits an important buy zone where the bulls are in control.
The RSI at 66 and in this context can be interpreted as the bulls are currently in control and no pullback is in sight in the short term.
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