- Dogecoin price breaks out of a symmetrical triangle consolidation due to buying pressure.
- The breakout was followed by Elon Musk's "Doge" tweet.
- Transaction history shows a large buyer concentration at $0.045 supporting the upswing.
Dogecoin price shows signs of life after retracing almost 75% from a record high of $0.088 fueled by the so-called Reddit Rebellion. As all eyes turned from the stock market drama to DOGE, the prices skyrocketed a whopping 800% in a few hours.
Dogecoin price heads to greener pastures
At the time of writing, DOGE seems to be resurrected from the dead due to Elon Musk's tweet. The meme token has already hit its target at $0.055 after surging by 82% following the breakout from a symmetrical triangle. If the buying pressure continues, Dogecoin price could slice through the next critical resistance level at $0.058.
DOGE/USDT 1-hour chart
The IOMAP model by IntoTheBlock reveals subtle resistance up to the $0.057 level and can be overcome if the buy orders continue to pile up. However, a crucial supply barrier lies at $0.058 that could seriously hinder Dogecoin's rally.
Here, roughly 6,000 addresses had formerly bought nearly 675 million DOGE. Breaking above this zone could catapult the altcoin to retest its recent all-time high of $0.088 or even jump start a new rally to record highs.
Moreover, any short-term selling pressure is expected to be cushioned by the support level at $0.052. Here, 478 addresses previously purchased 572 million DOGE. Hence, if the price heads any lower, holders around this price range may buy tokens to keep their investment ‘In the Money.’
Dogecoin IOMAP chart
It is essential to realize that the resistance around the $0.058 level could continue to subdue the price as many investors who purchased Dogecoin here are ‘Out of the Money.’ Therefore, if the selling pressure intensifies and DOGE fails to hold above the support at $0.051, a downswing could occur, forcing the coin to revisit the next immediate support barrier at $0.050.
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.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.