Dogecoin's price was primed high for a sharp move before today. It had closed with three consecutive inside days, price predicting a range expansion for the digital coin. The Dogecoin outlook remains neutral with a slightly bullish bias but not speculation on further social media hype.
It is well known by now that Dogecoin takes its name and logo from the Shibu Inu dog in the doge meme that was popular on the internet in the early years of the past decade. Started as a joke, the digital asset has recently achieved its form of celebrity status, with individuals ranging from Elon Musk, Snoop Dogg to Mark Cuban putting their support beyond the digital token.
In a new twist, Elon Musk tweeted today: The Dogefather SNL May 8. It references his past tweets about Dogecoin and his upcoming appearance on Saturday Night Live. The result was a 30% price spike for the cryptocurrency.
The Musk banter follows a tweet earlier this week from Mark Cuban about how people can use the Dogecoin for transactions, highlighting his team’s success, the Dallas Mavericks, adopting Dogecoin as a payment alternative.
Today, Dogecoin's price was up over 30%, but currently, the price is up just 13%. The high of the day touched the 78.6% retracement level of the April decline at $0.360 and fell shy of the symmetrical triangle’s apex at $0.390.
After the explosive price rally in January, Dogecoin retraced nearly 80% of the gain before rebounding in February near the then all-time high. For the next two months, it moved sideways with some gyrations until the April ramp price higher. This time the altcoin price corrected around 70% and is now trying to rally to the all-time high. Could the same fate await traders, a long period of sideways price action?
Due to historical precedent, the price unpredictability of social media banter, and the deceptive technicals, the outlook remains neutral.
The range between the all-time high at a price of $0.470 and the low of the April 23 hammer candlestick pattern level at $0.269 is the sandbox where traders can play in the short term.
0 Comments