Global stocks had a difficult last week, and cryptocurrencies were no exception! Whether it is exchanges such as Coinbase or crypto equities, the impact of the market’s sell-off spree has been felt worldwide and across industries. On Monday, September 9th, the crypto market’s Greed and Fear index, a determinant for gauging market sentiment, changed from Extreme fear to just fear, indicating the beginning of a consolidation phase.
Dogecoin broke its downward trend at 10:15 pm Sunday UTC and has ascended slowly yet steadily. On 11 am Monday (UTC), DOGE is priced at $0.098. This price is closer to the lower Bollinger band, indicative of selling pressure. The support level stands at $0.090, with the current price being $0.080 above the support level. Further, the volatility of DOGE is low, as showcased by the ‘squeeze’ formation, which represents a breakout. Now, the price can either go downwards or upwards, but given the upward momentum that has set in, DOGE could be moving towards a sharper uptick.
Source: Tradingview
The upper Bollinger band stands at $0.112, which could be the new resistance level for the crypto. To see a confirmed bullish move, DOGE needs to break out of the price point of $0.101, which is the current 20 simple moving average (SMA). If DOGE succeeds in going beyond this, the token will then begin testing its resistance level. According to Moenycontrol, the RSI for Dogecoin is 34.6, which is relatively closer to neutral, slowly reaching the ‘oversold’ signal.
Department of Government Efficiency pic.twitter.com/HFeHYNIkJN
— Elon Musk (@elonmusk) September 7, 2024
Elon Musk supported Dogecoin yet again on September 7th, with many crypto enthusiasts waiting for the token to take off. However, this is good news for investors as DOGE is not falling under the market hype. While Elon Musk’s support can reinstate trust and confidence among investors, solely depending on celebrity endorsement is not suitable for any crypto in the long run. On the contrary, DOGE is slowly breaking the downward trend and taking baby steps going upward two days after Musk’s support. This is good news for DOGE because investors seem to tally the token’s worth on the basis of its value rather than hopping into a market mania. If the token persists in its growth, it can reach as high as $0.15 and set out a bull run with the potential to reinstall more confidence in crypto investors based on its value proposition.
