Market mover Elon Musk made the headlines once again on guess what- yet another Bitcoin tweet. The eccentric Billionaire said that Tesla would resume transactions with the world’s largest digital asset “when there’s confirmation of reasonable clean energy usage by miners with positive future trend”.
The king coin jumped by 12% and knocked on the ceiling of $40,000 at the time of writing and while gains were evident across the global cryptocurrency market, Musk’s favorite crypto- Dogecoin, was surprisingly unimpressed. The ‘meme coin’ saw a modest rise of 4%, the least among the top 15 altcoins on CoinMarketCap.
Dogecoin 4-hour chart
Source: DOGE/USD, TradingView
A look at Dogecoin’s chart showed the cryptocurrency tussled with its 50-SMA (yellow) at the time of writing. Despite minor gains, DOGE remained restricted to a channel of $0.351-$0.304- a region where the cryptocurrency traded in the past week. On the plus side, the 24-hour trade volumes picked up across exchanges, and coupled with a rise in bullish momentum, DOGE was favored to break above its overhead resistance.
Reasoning
Relative Strength Index rose above 50 for the first time in 10 days and was a sign of bullish strength. A rise above 60 would put the buyers back in the driving seat. Momentum was steadily building up on Awesome Oscillator as the green bars eyed a rise above equilibrium. MACD’s fast-moving line maintained its trajectory above Signal line and sided with the bulls.
With all 3 indicators showing a sign of bullish resurgence, DOGE was tipped to break above $0.351-resistance over the coming sessions. However, the presence of another resistance mark at $o.38 could limit any further upside, especially since this region collided with 200 Simple Moving Average line (green). Once sellers return to the market, DOGE could find safe haven at a higher level of $0.352.
Levels to watch out for
Entry: $0.329
Take profit: $0.380
Stop-loss: $0.301
Risk/Reward:1.82
Conclusion
Dogecoin’s technicals backed a breakout above $0.351-resistance moving forward. Its predicted jump towards 200-SMA could offer buy opportunities for traders at the current price. A stop-loss placed at $0.301, just below DOGE’s press-time support.
