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Why Dogecoin enters 50% bull rally despite founder’s remarks on Elon Musk

  • Dogecoin price shows a massive squeeze in volatility, foreshadowing an explosive move.
  • A bullish outlook will see DOGE rally 45% and retest the $0.129 hurdle.
  • On the other hand, a four-hour candlestick close below $0.062 will invalidate the bullish thesis.

Dogecoin price has been coiling up like a spring for roughly ten days, indicating that a massive move is about to occur. The congestion will likely lead to a bullish move for DOGE that is brimming with volatility.

Adding a tailwind of sorts to the volatile move for DOGE are recent remarks from the Dogecoin founder Jackson Palmer. Palmer claims to had not made a single buck from his creation. The co-founder expressed the view that he has disliked the crypto space for a while in a recent H3H3 podcast. 

This is not the first time Palmer has done this. Additionally, Shibetoshi Nakamoto, the other co-founder of Dogecoin stated,

I would say jackson and i share quite a few perspectives - the big difference is he thinks the space is dumb and full of scams and doesn’t participate, and i think the space is dumb and full of scams and still participate cuz as far as i can tell everything else is just as dumb.

Additionally, Palmer also tweeted on May 14, stating that Tesla CEO Elon Musk, “Elon Musk is and always will be a self-absorbed grifter."

Dogecoin price to move higher

Dogecoin price crashed 50% over the last two weeks to set a swing low at $0.065. This massive downswing was a result of the UST-LUNA debacle, which caused the entire crypto market to tank. 

Regardless, DOGE seems to be making a comeback as it rallied 45% from $0.065 to $0.095, flipping the $0.087 resistance level into a support barrier on May 13. Since then, the volatility seems to be drying up for the meme coin, leading to a steady decline below the said barrier.

A quick recovery combined with a resurgence of volatility will be the key ingredient in a successful run-up. This move would open the path for DOGE to retest the intermediate barrier at $0.107.

From the current position at $0.085, this move would constitute a 19% ascent. However, if buyers take control and convert the said barrier into a support floor, the rally could extend to the $0.125 target.

In total, this ascent would represent a 45% gain and is likely where a local top will form. 

DOGE/USDT 4-hour chart

DOGE/USDT 4-hour chart

While things look edgy for Dogecoin price in terms of volatility, a recovery above $0.087 is a necessity for a rally’s revival. If Bitcoin price takes a U-turn and starts crashing, DOGE will promptly follow.

In this situation, if Dogecoin price produces a four-hour candlestick close below $0.062 will invalidate the bullish thesis. This development will open the path for bears to further crash DOGE to the immediate support level at $0.046.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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