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As soon as once more, the crypto world is abuzz right now with one other surprising motion in Dogecoin’s (DOGE) value, because of a tweet from the long-lasting Tesla CEO, Elon Musk. This has develop into a constant phenomenon, the place nearly each Elon Musk tweet hinting at or referencing Dogecoin prompts a flurry of exercise from DOGE fanatics, whatever the subtlety or directness of the tweet’s content material.
This morning, the catalyst for the sudden upswing in DOGE’s worth was a easy tweet from Musk. He shared a brand animation of the “X” brand, created by one in all Twitter’s most famous DOGE influencers, @DogeDesigner. Apparently, Musk shared the video with out remark, solely tagging DogeDesigner because the creator of the video. Nonetheless, this nod was sufficient to stimulate DOGE bulls into driving up the cryptocurrency’s value by a formidable 4%.
One other Elon Musk $DOGE pump!
#Dogecoin is up 4% due to this tweet from Musk.
* From: DogeDesigner @cb_doge https://t.co/IN4dk8q3jN
— Jake Simmons (@realJakeSimmons) August 23, 2023
Dogecoin Value Evaluation
But, it’s essential to delve deeper into the charts for a extra holistic view. Earlier than Musk’s tweet, DOGE confronted resistance simply shy of the 50 EMA on the 4-hour chart. As we’ve seen previously, such sudden pumps will be ephemeral. At press time, Dogecoin was already giving again a few of its beneficial properties, standing at a mere 2% enhance from the pre-tweet ranges.
However, the results of the tweet on the DOGE chart can’t be missed. The 4-hour chart reveals that Dogecoin surpassed the 23.6% Fibonacci retracement degree on account of Musk’s stimulus. The onus is now on DOGE fanatics to take care of the momentum and maintain above the $0.0626 value level. If achieved, there’s potential for DOGE to rally in direction of the 38.2% Fibonacci retracement mark at $0.666. That mentioned, traders ought to brace for appreciable promoting strain, particularly on the 78.6% Fibonacci retracement degree, which stands at $0.0732.
Trying on the increased timeframe, the 1-day chart paints a extra somber image for DOGE. Regardless of Musk’s newest tweet, Dogecoin stays ensnared in a persistent downtrend. This downtrend, outlined by a descending pattern channel, has been unwavering since December of the earlier yr.
Recalling current occasions, DOGE confronted a rejection at this channel’s higher trendline in late July and has been on a gradual southward trajectory ever since. Alarmingly, key help ranges supplied by the 200-day EMA and different important shifting averages have been breached.
Given the current chart patterns, there’s a looming risk of DOGE revisiting its yearly low at $0.05593. In a worst-case state of affairs, a slide to the descending channel’s decrease boundary at $0.053 may be on the playing cards.
Nevertheless, ought to DOGE staunchly defend this key value degree, it may sign an attractive entry level for potential traders. For any significant restoration, it will likely be crucial for DOGE to swiftly rebound from this low, ideally focusing on ranges above $0.058.
Featured picture from Twitter @Investments_CEO, chart from TradingView.com
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