Analysis of Dogecoin: DOGE Surpasses 30-day Resistance, Exhibits an 8% Surge
Dogecoin experiences a resurgence in value following a bearish performance the day before. Starting the day at $0.088, it reaches a peak of $0.096, but fails to break the first zero off the price. Despite this, DOGE remains bullish, with an increase of over 8%. The asset has shown a consistent upward trend throughout the day, with the 1-hour chart displaying numerous green candles outweighing the red ones. Traders are curious about the cause behind this recent surge.
The creator of Dogecoin, known as the “doge-daddy,” hints at the possibility of using the altcoin as a form of payment on Twitter. Although this announcement is limited to the platform itself, it ignites a fresh wave of rallies as more traders invest in the coin. While Elon Musk does not specify when this implementation will occur, some interpret it as another vague promise.
In addition to this news, DOGE achieves a new milestone in terms of price. It breaks free from a period of more than 30 days where it remained below $0.094. Since January 14, there have been several attempts to surpass this resistance level. The first attempt occurs eight days later but fails due to strong resistance at $0.093. It briefly touches this level six days after the initial try. Finally, the most recent attempt successfully breaks through the highlighted resistance, although it struggles to maintain its position.
Analyzing the indicators reveals a significant increase in buying volume, which aligns with the doubling of the 24-hour trading volume during the current intraday session. This surge in volume also explains the spike in the Relative Strength Index. However, Dogecoin is not the top gainer at the moment, as DYDX takes the lead.
DYDX, the token for the dydx platform, experiences a remarkable surge in value. Although its rally from the previous day was interrupted, the bulls have returned to drive the asset’s price upward. Starting the day at $2.49, it maintains a mostly bullish trajectory and reaches a level it hasn’t seen since May 2022. Peaking at $3.12, it retraces slightly and settles at $3.07, indicating a gain of over 23%.
Tags: Analysis
