The Dogecoin price is up for the fourth consecutive days as demand for the meme coin keeps rising. DOGE is trading at $0.4300, which is about 110% above the lowest level on May 21. Its market capitalization has surged to more than $55 billion.
Why DOGE surged: There are three primary reasons why the Dogecoin price has surged in the past few trading sessions. First, the coin surged after Coinbase announced that it will add it to the Coinbase Pro, a platform that is intended for institutional investors. Traders believe that this will increase its demand especially from institutions who have avoided it in the past few sessions.
Second, the coin rose as the rest of the cryptocurrencies rallied. Most coins like Bitcoin, Ethereum, Cardano, and Polkadot have all rallied in the past 24 hours. In most days, cryptocurrencies tend to move in the same direction.
Third, the Dogecoin price rose as activity in social media increased. Indeed, other meme assets like AMC, Blackberry, and GameStop rallied substantially. AMC shares more than doubled after the company launched a new program as it tries to communicate more with retail investors. So, what next for the Dogecoin price?
In a report yesterday, I wrote that the Dogecoin price would keep rising as bulls target the next key resistance at $0.4578, which was along the 50% Fibonacci retracement level. This prediction was almost accurate since the coin approached the resistance. In that prediction, we focused on the four-hour chart,
Turning to the daily chart, we see that the Dogecoin price is finding a lot of resistance at $0.4463. This is an important level since it was the highest level on April 16 and 21. The coin also seems to be forming a head and shoulders pattern.
Therefore, the coin could retreat since the H&S pattern is usually a sign of bearish reversal. If this happens, Dogecoin could see a major drop soon. This pattern will be invalidated if the price moves above the right shoulder. If this happens, it will open doors for it retesting its all-time high.
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