Price Analysis

Dogecoin (DOGE) Breaks the Downtrend and Eyes at Another 35% Upswing in the Next Week!

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Jan 15, 2022

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Article Highlights
  • Dogecoin broke out of consolidation quickly as Elon Musk announced Tesla accepting Dogecoin payments for some of its merchandise

  • The asset is expected to plunge down slightly before igniting a rally yet the immediate support levels are mandatory to be tested and clear significantly

While many other crypto assets are attempting to sustain within the trembled situation, Dogecoin aims at making huge moves in the upcoming days. The popular memecoin yet again proved the necessity of an external factor to range beyond its depleting trend.

But the main contrast with the recent plunge is the asset managed to sustain at the current levels, showcasing a diverse trend. 

It is an evident fact that with Elon Musk’s Dogecoin mention, the asset tends to jump more than 10% to 12%. But very quickly the asset sheds all its gains and plunges back to its initial positions within no time.

Signifying the least trust of the traders on the asset, they tend to close their positions with the least profit which occurs very rarely nowadays.

As soon as Musk announced DOGE payments for Tesla merchandise, the asset broke through the downtrend and surpassed the initial resistance levels to hit $0.21. 

  • The DOGE price spike high with the major announcement rolled out by Musk, which bounced from the lower support levels adding up nearly 32% to its value
  • Since then the asset is undergoing a slight correction, trending within a descending channel, compelling the price to hover at the lower band of the channel
  • The asset is trying very hard to sustain close to the resistance levels and aim at a strong breakout from these levels, yet the possibility of a minor pullback still haunts the rally
  • The DOGE price retest the middle bands of the channel around $0.1800 before smashing hard beyond $0.2 levels.
  • Currently, the volume is in favour of the bears and a small pullback may be expected during the weekend, while the next week open may be pretty bullish

Pivot Levels(Short-Term / 1Hr)

Moving Average(MA)-50 :- $0.1834

Moving Average(MA)-200 :-$0.1610

Resistance:- $0.2

Support:- $0.1611

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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