A memed tweet by Elon Musk on Thursday lifted the favourite coin of the Tesla CEO, attracting new bullish Dogecoin price predictions to the play.
Musk was responding to a tweet where a particular individual disparaged those who do not run Dogecoin nodes, to which the Dogecoin-loving Musk responded with a “100”. Dogecoin responded positively to the tweet, adding 2.11% on the day. This adds to the 2.87% increase seen on Wednesday.
The gains come as cryptos have taken on a bullish tone in recent days. There has been considerable interest in tokens themed around Dogecoin, and it only seems logical that Dogecoin itself joins the bullish party.
The daily chart shows a bullish flag on the daily chart. Thursday’s upside move is challenging the upper limit of the flag consolidation area. A break of this flag completes the pattern and opens the door towards the 0.3015 price level as the completion point. This move needs to take out the 0.2643 resistance (26 August low and 10 September high). An extension of the upside move targets 0.3496 as the next resistance target.
On the other hand, a rejection of price at the upper edge of the flag sends the price action towards the 0.2195 support. A breakdown of this support level opens the door towards 0.1961, with 0.1634 serving as an additional downside target. This scenario invalidates the pattern.
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This post was last modified on Oct 14, 2021, 12:51 BST 12:51