Dogecoin is one of the popular meme coins in the crypto world that is popularized by Elon Musk. He thinks it is a ‘people’s coin,’ so he has openly supported Bitcoin, Ethereum, and Dogecoin many times in the past.
The recent news of overtaking Twitter by Elon Musk has spiked the price of Dogecoin up around 20%, but as most analysts have suggested, it did not last long. The price was adjusted the very next day.
After this news market reacted in two different ways; in the New York stock market (NASDAQ), Tesla’s share went down more than 12% within a day. Many Dogecoin followers think now Elon Musk will accept decentralized currencies such as BTC, ETH, and DOGE on Twitter. However, it is speculation there is no real fact behind such an assumption.
In the past, Elon Musk’s tweets related to Dogecoin influenced the DOGE price, and now he purchased the social media platform. Now, what will be the future of Dogecoin? Read our price analysis.
At the time of writing this analysis, DOGE/USD is trading around $0.143, which is 10% down from the recent high. However, if you follow the daily chart closely, you can find a similar price surge when the news came on the first week of April that Elon Musk had purchased a 9% stake on Twitter. However, Dogecoin did not hold the price, and it fell.
We can find a similar spike this time, followed by a bearish engulfing candle on the very next day. Based on the current volatility and Dogecoin price prediction, we do not suggest investing for the short term despite it has initiated a green candle.
RSI is neutral, but MACD turns neutral on the daily chart. Moreover, candlesticks are forming around the baseline of the Bollinger Bands. All these technical indicators suggest a change in momentum for the short term. Indeed, it is expected because, in the past, Dogecoin could not hold a higher price.
On the weekly chart, the technical indicators do not suggest bullishness. However, the recent candle is an inverted hammer with green histograms on the MACD chart, which is good. On the other hand, RSI is below 50, which does not reflect a strong bullish momentum in the market.
That is why we do not suggest fresh investment at this stage. If you already invested in DOGE, then you should hold, but it is not an ideal time for the short-term and long-term investment until any real news comes in the market.
The price will be very volatile in the next two weeks due to twitter related news. Please follow our website to get the latest update on crypto markets.