DOGE/USD Choppy Trading in Play, Brace for a Breakout in Dogecoin
DOGE/USD closed at $0.345850 after placing a high of $0.364300 and a low of $0.336380. Dogecoin saw a retreat from the previous day’s bullish trend on Tuesday and reached near 0.3300 level. The CEO of Galaxy Digital, Mike Novogratz, recently discussed the potential for cryptocurrencies and their ability to transform the financial system and beyond with Goldman Sachs. On talking about Dogecoin, the Galaxy Digital executive explained that DOGE was started as a joke and grew for two reasons.
The first reason he gave was tribalism in the investing community. He explained that it was the same thing as the rise in GameStop, driven by a young community of investors who have been empowered as financial players through trading apps and social media platforms. The second reason he gave was the excessive printing of money by the government. He added that Dogecoin was a very speculative asset, even more than bitcoin. He said that it probably would not have long-term life because no institution was buying it, and at some point, the retail investors will also lose interest. These comments from the CEO of Galaxy Digital added pressure on DOGE/USD on Tuesday.
The losses in DOGE/USD were limited on Tuesday due to the recent supportive quotes from the influencer Elon Musk. The Tesla CEO continued to promote Dogecoin when he asked why he preferred DOGE over other superior alternative cryptocurrencies. In reply to this, Musk said that Doge has dogs and memes, whereas the others do not.
DOGE/USD remained low on Tuesday despite weakness in the U.S. dollar. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies fell by 0.25% to 89.5 level, its lowest since earlier days of January. Another reason behind the rising prices of DOGE/USD was the latest weakness in the U.S. dollar driven by the declining U.S. Treasury yields and rising risk-on market sentiment.
DOGE/USD Daily Technical Levels
Support Resistance
2168.62 2748.03
2532.35 2791.17
2489.21 2877.44
Pivot Point: 2661.76
DOGE/USD is trading at 0.3364 area, facing resistance at 0.3673 level. On the 4-hour chart, the pair has violated the downward trendline that was extending a solid resistance around 0.3100 level. For now, the same resistance level is working as a support. The RSI and MACD indicators support the bullish trend in Doge, whereas the EMA is staying far away, around 0.400. The idea is to stay bearish below 0.3400 area today and bullish above the same. Good luck!
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