12/4/2022 | forexlive
DOGE coin technical analysis: Bullish.
Buying opportunity for HODLers as Elon Musk reaffirms support for the cryptocurrency.
From the peak in May 2021, Dogecoin has been in a strong bear market as market expectations of higher interest rates from the Fed to fight inflation forced buyers to rush for the exit. We’ve seen a general bear market for over a year in the cryptocurrency space and it reached a peak in fear with the collapse of FTX, one of the biggest crypto exchanges in the world. One of the most famous quotes from Warren Buffet is “be fearful when others are greedy and greedy when others are fearful”. Let’s see the reasons why now it may the time to look for buying opportunities for Doge Coin:
The FTX fiasco may have marked the peak in fear.
The US Federal Reserve is switching to a less aggressive tightening.
The market sentiment switched to risk-on as the Fed is seen pausing rate hikes soon and the inflation rate is expected to moderate going forward.
Elon Musk reiterated his support for Dogecoin during a recent conversation on Twitter Spaces which reached at some point 1.1 million listeners.
Technical analysis is pointing to further upside movement.
For these reasons Dogecoin may be up for a rally after trading in a tight range between 0.06 and 0.07 cents for over 5 months until Elon Musk acquisition of Twitter provided the catalyst for a breakout.Following price chart is provided by TradingView where you can follow additonal Doge technical analysis ideas.
From a technical analysis perspective, we can see how the price broke out above the year-long trendline and pullbacked to retest it before continuing the bullish trend. Right now, the price is hovering near the previous range at 0.10 and 0.13 cents, which acted as resistance for the October rally. The price may now try again to break that area and, upon a successful breakout, continue at least till the previous PoC (Point of Control) zone at 24.5 cents.
Watch the video below for the full breakdown of the buying opportunity and more detailed technical analysis.
Elon Musk also mentions payments in his recent tweet, sharing slides from a company talk and mentioning payments. While Doge coin was not directly referenced, with the existing knowledge that Elon like Doge, this tweet was a catalyst for a recent rise in Doge value.