Dogecoin Price Analysis: Why DOGE Coin Surged 30% Today, Should You Enter too?

By Brian Bollinger
December 14, 2021 Updated December 14, 2021
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The DOGE coin price is still under a short-term downtrend that even broke crucial support of the $0.16 mark yesterday. However, today the price is up 30%, which is most likely caused by the billionaire Elon Musk’s tweet, which says, “Tesla will make some merch buyable with Doge & see how it goes.”

Key technical points:

  • The DOGE coin gives a fakeout from the $0.16 support
  • The intraday trading volume in the DOGE coin is $5.39 Billion, indicating a 660.5% gain.

TradingView Chart

Source- DOGE/USD chart by Tradingview

The last time when we covered an article on DOGE/USD, the coin displayed a steady downfall which plunged the price to the $0.2 support. Though the price was trying to sustain above this level, the overpowered sellers breached this bottom support, continuing the red rally in the DOGE coin.

Yesterday, the technical chart indicated more bearish sentiment for this coin as it broke down from another crucial $0.16, which previously initiated a remarkable rally on June 21. However, Elon Musk’s tweet flipped this breakdown into a fakeout, displaying a huge green candle with a 30% gain in the intraday session.

The DOGE coin price is still trading below the crucial EMAs(50, 100, and 200), indicating a bearish trend. Moreover, the daily Relative Strength Index(52) displayed a similar boost in its value and has jumped above the neutral zone.

DOGE/USD 4-hour Time Frame Chart

TradingView Chart

Source- DOGE/USD chart by Tradingview

In this lower time frame chart, the sudden pump in DOGE coin price has breached some significant resistance levels, the descending resistance trendline, the 200 EMA line, and a horizontal resistance zone of $0.2-0.195.

The price is currently retracing back to these levels, and the crypto traders could grab an entry opportunity if the price shows enough sustainability above these levels.

However, they should strictly follow their risk management as the overall trend of the coin is still bearish.

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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