|

Why Dogecoin enters 50% bull rally despite founder’s remarks on Elon Musk

  • Dogecoin price shows a massive squeeze in volatility, foreshadowing an explosive move.
  • A bullish outlook will see DOGE rally 45% and retest the $0.129 hurdle.
  • On the other hand, a four-hour candlestick close below $0.062 will invalidate the bullish thesis.

Dogecoin price has been coiling up like a spring for roughly ten days, indicating that a massive move is about to occur. The congestion will likely lead to a bullish move for DOGE that is brimming with volatility.

Adding a tailwind of sorts to the volatile move for DOGE are recent remarks from the Dogecoin founder Jackson Palmer. Palmer claims to had not made a single buck from his creation. The co-founder expressed the view that he has disliked the crypto space for a while in a recent H3H3 podcast. 

This is not the first time Palmer has done this. Additionally, Shibetoshi Nakamoto, the other co-founder of Dogecoin stated,

I would say jackson and i share quite a few perspectives - the big difference is he thinks the space is dumb and full of scams and doesn’t participate, and i think the space is dumb and full of scams and still participate cuz as far as i can tell everything else is just as dumb.

Additionally, Palmer also tweeted on May 14, stating that Tesla CEO Elon Musk, “Elon Musk is and always will be a self-absorbed grifter."

Dogecoin price to move higher

Dogecoin price crashed 50% over the last two weeks to set a swing low at $0.065. This massive downswing was a result of the UST-LUNA debacle, which caused the entire crypto market to tank. 

Regardless, DOGE seems to be making a comeback as it rallied 45% from $0.065 to $0.095, flipping the $0.087 resistance level into a support barrier on May 13. Since then, the volatility seems to be drying up for the meme coin, leading to a steady decline below the said barrier.

A quick recovery combined with a resurgence of volatility will be the key ingredient in a successful run-up. This move would open the path for DOGE to retest the intermediate barrier at $0.107.

From the current position at $0.085, this move would constitute a 19% ascent. However, if buyers take control and convert the said barrier into a support floor, the rally could extend to the $0.125 target.

In total, this ascent would represent a 45% gain and is likely where a local top will form. 

DOGE/USDT 4-hour chart

DOGE/USDT 4-hour chart

While things look edgy for Dogecoin price in terms of volatility, a recovery above $0.087 is a necessity for a rally’s revival. If Bitcoin price takes a U-turn and starts crashing, DOGE will promptly follow.

In this situation, if Dogecoin price produces a four-hour candlestick close below $0.062 will invalidate the bullish thesis. This development will open the path for bears to further crash DOGE to the immediate support level at $0.046.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

AAVE slips below $186 as bearish signals outweigh the SEC investigation closure

Aave (AAVE) price continues its decline, trading below $186 at the time of writing on Wednesday after a rejection at the key resistance zone. Derivatives positioning and momentum indicators suggest that bearish forces still dominate in the near term.

Hyperliquid stabilizes amid plans to burn assistance fund

Hyperliquid (HYPE) stabilizes above $26 at press time on Wednesday after three straight days of losses. Hyperliquid Foundation has started a validator vote to reduce supply by burning the assistance fund, which holds over 37 million HYPE tokens.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple extend correction as bearish momentum builds

Bitcoin, Ethereum, and Ripple remain under pressure as the broader market continues its corrective phase into midweek. The weak price action of these top three cryptocurrencies by market capitalization suggests a deeper correction.

Ethereum Price Forecast: Active addresses plunge to May levels amid resumption in US selling pressure

Ethereum (ETH) weekly active addresses have plunged sharply in December, declining from 440K to 324K, levels last visited in May. The decline in active addresses has also pushed down the number of transactions on the network to July lows.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.