Dogecoin price undergoes the 'perfect' pump-and-dump storm after Elon Musk's tweet

Elon Musk puts Dogecoin in the spotlight with his literal tweet.
DOGE pumped to closed to $0.07 but immediately corrected to $0.057.
Dogecoin must hold above $0.06 to avert potential losses back to $0.05.

Dogecoin has become a household name in the cryptocurrency industry, with its social volume surpassing that of Bitcoin on several occasions. The ‘Meme Coin‘ spent the entire March battling a descending trend line resistance. On the downside, primary support had been established at $0.05.

Meanwhile, it is no doubt that Elon Musk, the founder of the largest electric vehicle manufacturer, Tesla, is Dogecoin’s biggest fan. On April 1, Elon Musk sent a tweet that said, “SpaceX is going to put a literal Dogecoin on the literal moon.” Note that Musk is also the founder of SpaceX, one of the world’s largest private space exploration companies.

Dogecoin price reacted immediately, going ballistic above a descending triangle pattern. Despite the pattern having a bearish bias, DOGE shot significantly higher, breaking past several hurdles, including $0.06 and $0.065.

The 26.6% triangle breakout target was not only achieved but also outperformed with Dogecoin extending the bullish leg close to $0.07. However, social sentiment started to shift as the tweet’s impact simmered down. DOGE corrected below the tentative support at $0.065 and $0.06.

DOGE/USD four-hour chart

Short-term support appears to have been embraced at $0.057, with Dogecoin remaining pivotal at $0.06. If the immediate anchor fails to hold, overhead pressure may soar as more selling orders are triggered.

Dogecoin may seek refuge at the 100 Simple Moving Average (SMA) on the four-hour chart and highlighted at $0.055. Other support levels to keep in mind include the 200 SMA at $0.054 and the significant buyer congestion at $0.05.