- Dogecoin promptly retakes crucial April high at $0.453.
- The growth/distribution outline for periodic volume is supportive of a firm low.
- An emerging double bottom on the intra-day charts to validate DOGE trend revival.
Dogecoin closed under the crucial April high yesterday, placing the chase of $1.00 in uncertainty. The latest Elon Musk tweet has shifted the descent. This increases the likelihood of DOGE closing today with a bullish plunging day.
Dogecoin price needs liquidity and FOMO.
On May 11, Dogecoin ended with two back-to-back inside days; hinting the decline from the May 7 high had been depleted, and a renewal of the abrupt rise was near. Yet, yesterday’s decline and close under the April high of $0.453 decreased the bullish outlook to neutral.
The DOGE outlook improved after a tweet from Elon Musk saying, “working with Doge devs to improve system transaction efficiency. Potentially promising.”
Reckon Dogecoin closes today over the 50% retracement level of the rally; from the April low at $0.443 and the April high of $0.453. The DOGE risk will turn bullish and forms the foundation for a new advance on the psychologically crucial $1.00. A bullish immersing day demanding a close over $0.530 would add to the intensity of the bullish outlook.
To validate a low, Dogecoin needs to trade beyond the double-bottom trigger price at $0.597. A strong DOGE breakout from the bottoming pattern would target the 138.2% Fibonacci extension of the April decline at $0.756. The topside trend line from the January high through the April high currently at $0.798. Once the interim resistance levels are liquidated; DOGE will be set to question $1.00 – and the 161.8% extension of the April decline at $1.01.
To make sure, Dogecoin does encounter erratic swings thanks to social media viral and overall FOMO. The news tonight is just another case, but if investors embrace the personality of DOGE and couple it with objective technical levels, they can successfully capitalize on one of the most important financial stories of 2021.
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