DOGE/USD Supported Between Channel Supports – Can it Push DOGE Higher?
The DOGE/USD closed at $0.254020, after placing a high of $0.263190, and a low of $0.242560. However, Dogecoin consolidated within a tight range on Wednesday, remaining on the bearish track, and losing all of its gains of the previous day. The Dogecoin losses on Wednesday could be attributed to the rising prices of the US dollar and the reversal of Bitcoin.
According to a press release by Vancouver-based DDP Studios, a game named Million Doge Disco is set to launch globally on July 3. The interesting thing about the game is that it is an augmented reality (AR) Pokemon GO style game that will reward players with non-fungible “Disco Doge” tokens and Dogecoins.
The game concept came from Gary Lachance, a Dogecoin millionaire and the founder of Decentralized Dance Party. He has decided to give away one million of his Dogecoin, that he has held in his paper wallet since 2014. At the time of buying the 1M Dogecoins, they cost only C$300, and now, with the huge increase in the value of Doge, the total value of 1M coins has reached C$300,000. This news added strength to the DOGE/USD. However, the coin failed to reverse its bearish course for the day, as investors were more focused on the prevailing crypto market trend.
Meanwhile, Tesla CEO Elon Musk has also shown his support for a proposal that would decrease the transaction fees on the network of the meme-inspired cryptocurrency, Dogecoin, from a recommended fee of 1 DOGE to 0.01. Musk said that it was important to support the proposal brought forward by the developer of Dogecoin, Patrick Lodder, in order to decrease the transaction fees of the cryptocurrency, as this would make it more competitive.
Lodder added that transaction costs should be cheaper than for Bitcoin and Litecoin, as this would increase the chances of adoption. He further added that this problem was causing people to keep their Dogecoin tokens on centralized trading platforms longer, instead of moving them to a wallet they control, because the perceived value loss involved in transferring DOGE to a secure wallet is too high. He recommended reducing the fees by at least 50 times, in order to stay competitive.
Additionally, the rising prices of the US dollar also put added pressure on the DOGE/USD, as the greenback was high on board. The US Dollar Index reached 92.45, amid a risk-off market sentiment, and also thanks to the better US jobs report from US Labor Department. The DODGE/USD and the greenback share a negative correlation, which resulted in a continuation of the bearish momentum of the DOGE/USD on Wednesday.
DOGE/USD – Daily Technical Levels
Support Resistance
0.243324 0.263954
0.232627 0.273887
0.222694 0.284584
Pivot Point: 0.253257
DOGE/USD Technical Outlook
On the technical front, the DOGE/USD coin consolidated above a strong support area of 0.2353. An upward channel is extending this support level, as we can see on the 4-hour timeframe. On the higher side, the immediate resistance prevails at 0.2890, and a breakout of this range could lead the DOGE/USD price towards the next resistance level of 0.3388. The leading oscillator indicators, like the MACD and the RSI, support a mixed bias, as the values of both indicators are tossing above and below their crossover levels. Today, let’s consider taking a buy trade over 0.2350 until 0.2890. Conversely, selling should be preferred below the 0.2285 area. Good luck!