Dogecoin is still climbing higher after witnessing a sharp surge during the previous sessions, thanks to its lead promoter Tesla CEO Elon Musk once again. At the time of writing, DOGE/USD is trading around $0.17.

Also known as ‘Dogefather’ among the online community, Musk and his remarks on the leading memecoin have often driven severe volatility not only in Dogecoin but across other cryptocurrencies as well. The recent upswing was triggered after he updated his profile picture on Twitter to a headshot sporting sunglasses which feature a reflection of Doge in them.

DOGE holders took this as a sign of rising interest in the cryptocurrency by Musk, causing buyers to enter the game and take its price higher. In the past 24 hours, Dogecoin has strengthened by over 10%, although it is still down by over 4% over the past week.

With the crypto market still trading with a bearish mood, despite the recent surge, memecoins are set to post a loss for the third consecutive month as retail investors drive away from the highly volatile, unregulated and unpredictable digital assets. In addition, new entrants are also hesitant to step into the market which is experiencing sharp sell-offs owing to the increased regulatory scrutiny they are being subject to in many countries lately.

The decline in interest among retail investors is evident from online brokerage firm Robinhood’s forecast of a fall in trading activity. After generating as much as 17% of its revenue from crypto trading activities during the bull run at the beginning of the year, the company saw this share fall to as low as 4% in Q2 2021. Robinhood was one of the apps that benefited immensely from the soaring interest in Dogecoin, with 34% of its revenue coming on the back of a spike in DOGE price and trading volume.

Key Levels to Watch

On the 4-hour chart, the smaller moving averages and leading technical indicators momentum and MACD are exhibiting a bullish bias. Although, the larger timeframe MAs are flashing sell signals in keeping with the overall trend in the crypto market at the moment.

For now, the price is holding just below the pivot point at $0.18 but is above the immediate support level at $0.16. Further buying interest can drive Dogecoin’s price higher above the pivot and back up above the key $0.20 level to test resistance at $0.21.