- Dogecoin price needs to reconquer a critical support level to aim for a rebound.
- The digital asset faces only one big resistance level before a potential breakout to $0.09.
- However, the interest in Dogecoin has significantly declined in the past few weeks.
It seems that Elon Musk might actually end up endorsing Dogecoin as the concentration of whales isn't as bad as previously believed. The biggest whale is Robinhood which purchased Dogecoin to offer trading to its users in 2018.
In his last tweet, Elon Musk stated that he will fully support Dogecoin if the concentration of whales diminishes. However, since there aren't that many large individual holders, perhaps Musk is closer than expected to endorse the digital asset.
Dogecoin price aims for a rebound to $0.09
On the 12-hour chart, Dogecoin bulls are fighting to push the digital asset above the 26-EMA resistance level. A rebound from this point at $0.057 would be significant.
DOGE/USD 12-hour chart
The In/Out of the Money Around Price (IOMAP) chart shows that the strongest resistance area is located between $0.058 and $0.06. If Dogecoin price can climb above this point, it can quickly reach $0.09 again.
DOGE IOMAP chart
Additionally, there is a symmetrical triangle pattern formed on the 12-hour chart that broke bullish. A candlestick close above $0.055 would confirm it. The price target is around $0.094, a new all-time high for Dogecoin.
However, the IOMAP model also shows that losing the key support area between $0.0533 and $0.055 would be devastating and could likely send Dogecoin price down to $0.048.
DOGE transactions
Clearly, the interest in Dogecoin has faded away. The number of large transactions has significantly decreased in the past two weeks from a peak of 16,260 per day on January 29 to only 1,400 currently.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Latest Crypto News & Analysis
Editors’ Picks
Shiba Inu enters 96% bull run as whales continue accumulating SHIB
Ethereum whale bought $11.5 million worth of SHIB tokens on Tuesday. Shiba Inu token has reached 783,739 holders, large wallet investors accumulate SHIB tokens through the dip. SHIB was briefly the cryptocurrency with the largest turnover on exchanges Binance and Coinbase on Monday.
Three reasons why MATIC price will breakout to a new all-time high at $4.5
MATIC price breached a crucial resistance level that has prevented it from rallying four times over the past four months. The recent attempt seems to have an extra oomph behind it, hinting that this run-up could trigger a massive move.
XLM price eyes 55% breakout if Stellar bulls can flip one crucial barrier
XLM price has been stuck trading under a crucial blockade for nearly five months. The situation is set to change soon, however, as Stellar coils up for an explosive breakout.
Terra's Do Kwon files lawsuit against SEC while analysts turn bullish on LUNA
Do Kwon, Terraform Labs CEO, was served a subpoena by the SEC while appearing at Messari's Mainnet conference. According to Do Kwon and Terraform Labs' lawsuit against the SEC, the regulatory agency lacks jurisdiction over the plaintiffs.
Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive
Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.