Dogecoin price appears to accumulate below key resistance after last week’s close below the major support level of $0.158.
The top meme coin is currently the 11th biggest cryptocurrency by market cap. It is currently trading at 0.14 cents with a $19 billion market cap which touched the heights of $89 billion in May 2021.
Elon Musk came out as a strong supporter of Dogecoin last year and the tech billionaire’s tweets were often seen affecting the meme coin’s price. Musk’s influence still prevails, as Dogecoin price pumped on Tuesday by more than 10%, when the billionaire tweeted about his wish to buy a Macdonald’s Happy Meal with the meme coin. The fast-food chain doubled down on the joke by asking Elon Musk to accept Grimacecoin.
Grimace is a character used by Mac Donald’s in its marketing campaigns.
Dogecoin price is still more than 80% down from its ATH of $0.73 in May 2021. The decline in meme coin hype and investors’ interest has also resulted in a decrease in daily volume which has dropped from close to $50 billion in summer 2021, to only $1.5 billion yesterday.
The weekly and daily chart of Doge is showing a clear breach of the $0.158-$0.17 support area which has previously acted as strong support for the top meme coin. However, the price saw a bounce from $0.12 along with the rest of the crypto market and is now trading at $0.14.
In fact, last week’s closing below $0.158 has left the Dogecoin price hanging by a thread. If bulls fail to push the price above $0.17 in short term, then bears can take the price way below $0.10.
However, a bullish break above the downward trend line may give investors a sigh of relief with an upward target of $0.21 in short term and $0.35 in the medium term. $0.35 also coincides with the Fibonacci retracement level of 38.2% from ATH of $0.73 to the recent low of $0.12.
This post was last modified on Jan 27, 2022, 10:22 GMT 10:22