Doge Price Forecast – DOGE/USD Violates Downward Trendline, Trade Idea
Arslan Butt•Monday, May 24, 2021•2 min read
DOGE/USD closed at $0.296080 after placing a high of $0.346330 and a low of $0.272470. Dogecoin extended its losses over the weekend and continued its bearish streak for the third consecutive session on Sunday. The recent slide resulted from the latest drop in
BITCOIN due to China’s crackdown. On Friday, the Chinese State Council committee led by Vie Premier Liu He announced for the first time to reduce the power consumption in an industrial area where many
bitcoin mining facilities operate. Virtual currency mining is a big business in China that accounts for 70% of the world’s crypto supply. After this news, Bitcoin prices plummeted and dragged almost all digital currencies, including
DOGE/USD.
On the flip side, the CEO of Tesla, Elon Musk, has recently revealed that he has not and will not sell any dogecoin. These comments responded to an investing influencer’s claim that Musk has a large holding of Dogecoin. Musk, who also runs a rocket company SpaceX, has plans to put the memecoin on the moon with the SpaceX DOGE-1 mission to the moon early next year. This mission will demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce. Furthermore, the rising prices of the U.S. dollar also added further pressure on the DOGE/USD prices and dragged them below the 0.28000 level over the weekend. The U.S. dollar strengthened over the weekend amid better-than-expected PMI data on Friday and added pressure on Dogecoin.
DOGE/USD Daily Technical Levels
Support Resistance
0.325086 0.358196
0.308253 0.374473
0.291976 0.391306
Pivot Point: 0.341363
DOGE/USD is trading at 0.3364 area, facing resistance at 0.3673 level. On the 4-hour chart, the pair has violated the downward trendline that was extending a solid resistance around 0.3100 level. For now, the same resistance level is working as a support. The RSI and MACD indicators support the bullish trend in Doge, whereas the EMA is staying far away, around 0.400. The idea is to stay bearish below 0.3400 area today and bullish above the same. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
ABOUT THE AUTHOR
See More
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Nice analysis n views