The Dogecoin price has been relatively volatile recently. DOGE is trading at $0.50, which is 32% below its all-time high of $0.7392. The currency has a market capitalization of more than $64.7 billion, making it the 5th biggest digital currency in the world.
What happened: The Dogecoin price has been volatile in the past few weeks. The currency’s price surged ahead of Elon Musk’s SNL appearance and then crashed by 50%. It then bounced back and is currently 42% above the lowest level last week. This price action is associated with Elon Musk, Tesla’s CEO who has sent several tweets about the currency recently.
In a recent tweet, he said that he had contacted the currency’s developers on how to improve it. In a related announcement, the developers said that they had been working with Elon Musk since 2019. To many Dogecoin fans, this is a sign that Musk has a long-term view of the meme coin. This is notable because of Elon Musk’s balance sheet. He has a net worth of more than $165 billion, making him the second-richest person in the world. So, what next for the currency?
The two-hour chart shows that the DOGE has been in a consolidation mode in the past few days. The coin is trading at the psychologically important level of $0.50, where it has been since yesterday. The chart also identifies the important support and resistance levels at $0.45, $0.349, and $0.60, respectively.
Therefore, looking at this chart, it is hard to tell the direction in which the coin will break out at. The coin is also at the 50-day and 25-day moving average. As such, the outlook is neutral. Traders should pay attention to the support and resistance levels at $0.45 and $0.60, respectively.
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