Dogecoin, a popular meme coin, was in the news because Elon Musk was invited to become a part of a Twitter board member. DOGE has become popular in the crypto world due to the support of Elon Musk.
The news of Elon Musk buying a 9% share of Twitter has moved the price of Dogecoin. However, it did not sustain the same level even later.
However, another news has come in the market that Elon Musk wants to sell the 9% share or buy the 100% share of Twitter. All of these make DOGE investors quite confused. Many experts believe that the Dogecoin price spiked up in the last few weeks because of speculation and not based on any strong fundamentals values.
The community thought Twitter would accept the Dogecoin payment soon, but the price is again down due to recent news.
Should you invest in Dogecoin? Read the Dogecoin prediction and price analysis before investing.
At the time of writing, DOGE was trading around $0.134. If you analyze the daily chart, you will find that the price faced resistance around the $0.148 level. After that, it has taken support, but if it breaks the support level, the next support level will be $0.121.
The MACD line indicates bearish momentum as it is trading below the Signal Line. RSI is stable at around 46. The price may come back to the lower range of the Bollinger Bands, suggesting extreme bearishness in the short-term market. You should not invest in this coin for the short term.
Moreover, the weekly chart is also bearish, but the MACD indicator is positive with green histograms. However, it is not the ideal time for long-term investment because there are two consecutive red weekly candles in the lower half of the Bollinger Bands. Besides that, RSI is also below 40.
We do not suggest you invest in a meme coin for the long term because it is mainly influenced by sentiments and news. However, it is backed by Elon Musk, and any tweet from him can disrupt any technical or fundamental analysis.
Still, if you are active on social media, you can invest for the short term, but you should mark the levels properly to enter and book profit in short-term trading.