Tesla CEO, Elon Musk continues to be a driving force behind Dogecoin. The news that he was looking to buy a 9.2 percent interest in Twitter on April 4 boosted Doge’s value by more than 20% to $0.174 the next day, its highest level in nearly three months.
The momentary Dogecoin value rise that began last week in response to Musk’s offer to buy Twitter appears to be fizzling out, as Doge concludes the week up over 8%. DOGE Price fell to $0.142 on April 17, three days after reaching a high of $0.149.
The Dogecoin correction, even though minor, increased its chances of triggering a fundamental bearish reversal pattern with an 85 percent chance of achieving its drawback target.
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Dogecoin Price To Plunge Heavily
DOGE Price declined below the $0.140 support level and is now trading at the $0.1354 level. The next major support sits near the USD 0.132 level, below which the price could decline to USD 0.122.
DOGE appears to have been constructing the head and shoulders (H&S) Pattern since March 24. Following the formation of its correct shoulder, the cryptocurrency now expects a decline to the neckline, followed by a full-fledged bearish breakout, as shown in the chart below.
As a result, Dogecoin’s chances of correcting towards its H&S neckline near $0.132, down about 7.5 percent from its current value, appear to be increasing. The range coincides with DOGE’s 50-day simple moving average (50-day SMA; blue wave), providing additional support. As a result, there’s a good risk that Dogecoin hitting below $0.1
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