Dogecoin Price Forecast – DOGE/USD Heads to Test Double Bottom, Bearish Bias Dominates!
Arslan Butt•Wednesday, May 19, 2021•2 min read
DOGE/USD closed at $0.475860 after placing a high of $0.500320 and a low of $0.472920. Dogecoin dropped on Tuesday and extended its losses despite some favorable news on its hand. One of the largest cryptocurrency exchanges globally, Coinbase, announced that its customers would soon be able to buy and sell Dogecoin. The San Francisco-based trading platform will now support the coin, which has recently become the fourth-largest cryptocurrency by market cap.
Dogecoin has been getting attention from billionaires like Elon Musk and is circulating in the news a lot lately. The recent ups and downs of Dogecoin prices are primarily due to the actions and words of Tesla CEO. Furthermore, IOHK CEO Charles Hoskinson explained how Musk could fix Dogecoin. Musk has been at the forefront to make the coin more efficient by talking to its developers. The recent rally in Dogecoin is mainly due to the tweets made by Musk in its favor. The suggestions explained by Hoskinson to improve Dogecoin raised hopes that Dogecoin could be the currency with lower transaction fees and energy-efficient coins.
Recently, Dogecoin developers revealed that Elon Musk’s interest in
DOGE was not new as he has been advising the developers since 2019. Developers have also reported that a new technical upgrade was in the pipeline. On the other hand, the new joke currency kept declining on Tuesday despite weakness in the U.S. dollar. The greenback remained under pressure due to faded hopes that Fed will raise interest rates after many officials reported that the recent rise in inflation was temporary. There was no need to worry about it. The U.S. Dollar Index (DXY) declined to $89.69 on Tuesday and capped further losses in
DOGE/USD.
DOGE/USD Daily Technical Levels
Support Resistance
0.477756 0.544416
0.441283 0.574603
0.411096 0.611076
Pivot Point: 0.507943DOGE/USD is exhibiting a nosedive, falling from $0.45 level to $0.4056. On the lower side, the
DOGE/USD pair is likely to gain support at a $0.3880 level extended by 200 periods EMA. The MACD and Stochastic have entered the oversold zone, but at the same time, Dogecoin has violated the double bottom pattern at 0.4500 level. Below this, the odds of selling trend remain solid. On the lower side, support stays at 0.3887 level now, and bearish bias seems strong today. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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