Dogecoin (DOGE) May Start A New Rally! Here’s Why
The popular prank currency Dogecoin (DOGE) has made double-digit gains in the last 24 hours, with the increase that started last day. In addition, Dogecoin is expected to start a new rally today. Here is the reason;
Rally Expectation in Dogecoin (DOGE)
The mood in the cryptocurrency market has soared on Monday after Bitcoin prices surpassed $49,000. With this momentum in Bitcoin, traders are waiting to see if Bitcoin can break $50,000. Movements in Bitcoin, the #1 cryptocurrency by market cap, play an important role in driving market sentiment.
So much so that Bitcoin is dragging other cryptocurrencies after it, causing them to act similarly. So popular joke currency DOGE , BTC share a close correlation with.
Emotion Is Not The Main Factor
However, emotion is not the main factor driving the current rally in Dogecoin. The Dogecoin community took great interest in Elon Musk’s recent tweet that his pet dog Floki is adopting a Tesla car.
The reason for the joy is that the Dogecoin community sees this post by Musk as a positive sign that Tesla may be ready to accept payments at DOGE .
A huge fan of Dogecoin, Elon Musk often calls himself the Dogefather when he posts any updates about Dogecoin on social media, creating significant volatility in the price of the joke currency .
DOGE’s price got another boost after Mark Cuban praised the prank currency during an interview with Fox Business on Monday.
Meanwhile, an interesting development regarding NFT could accelerate the use of DOGE in the near future. ElonVerse, a meme-based NFT project featuring 10,000+ uniquely funny Elons, is ready for release on the Binance Smart Chain. Investors in ElonVerse ‘s NFTs can also earn passive income in Dogecoin by receiving 5% of the token value they own in Dogecoin.
Levels to Watch in Dogecoin
On the 4-hours price chart of DOGE/USD , the moving averages and MACD are showing a bullish bias. However, other leading technical indicators are momentum and the Stochastic RSI is also pointing to some selling interest.
Dogecoin price is holding above the pivot point at $0.214 and the initial resistance at $0.233. Increasing buying pressure could soon test a second resistance at $0.246; A break above this could lead DOGE to break above $0.25 as far as the $0.278 resistance.