The Dogecoin price rebounded yesterday after it received some support from Elon Musk. DOGE has surged by more than 11.74% in the past 24 hours, bringing the total market cap to more than $40 billion.
What happened: Dogecoin has had a remarkable rise to become the 7th biggest cryptocurrency in the world. This is a strong move considering that there are almost 5,000 cryptocurrencies in the world. This growth is mostly because of the strong community of enthusiasts who hold it despite the fact that it has no major intrinsic value, meaning that it is not used widely as a currency.
Elon Musk, the second-richest man on earth, has had a major role in the currency. His tweets and statements about it tends to push it higher. Yesterday, the currency surged after he sent the following tweet.
Looking ahead, there is a catalyst that could push the Dogecoin price higher. Elon Musk is expected to host the SNL next week. While this will be just a comedy show, enthusiasts will likely pile into the currency ahead of the show.
Looking at the daily chart below, we see that the DOGE price has been attempting to recover after it crashed hard last week. This recovery has seen it rise above the 38.2% Fibonacci retracement level of $0.2967. It remains above the 25-day and 50-day moving averages.
While this chart is not clear about the next price action, I believe that the price will see a rebound in the near term. I can’t rule out another major rally to its all-time high of $0.4470 ahead of the SNL show.
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