The Dogecoin price is fighting back from the precipice after recovering the key 200-DMA. Furthermore, an upside breakout could lie ahead for DOGE.
Dogecoin is trading at $0.1910, higher by $0.0038 (2.01%).
I’ve made no bones about the fact that I believe several assets offer longs more value than Dogecoin. However, it seems that DOGE’s biggest critic is one of the people fundamental in its creation.
Co-creator Jackson Palmer gave a scathing assessment of the cryptocurrency market in a recently posted social media thread.
Although the market has its fair share of critics, it’s surprising to see the 180 degrees about-turn from the industry insider with a distinctive pedigree.
Palmer began his Tweetstorm:
I am often asked if I will “return to cryptocurrency” or begin regularly sharing my thoughts on the topic again. My answer is a wholehearted “no”, but to avoid repeating myself I figure it might be worthwhile briefly explaining why here…
Adding,
“After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity”,
Furthermore, Palmer, who, along with Billy Markus, was instrumental in bringing the meme-coin to market, voiced his opinion on how the industry has transformed from its idealistic vision to something much more sinister and inherently corrupt.
Of course, everyone is entitled to an opinion, but many will attribute the rant to ‘sour grapes’ despite Palmer being uniquely qualified to comment. Sadly, the co-founders have long since liquidated their holdings. Therefore the two gained no benefit from the incredible appreciation in the Dogecoin price earlier this year.
Surprisingly, what could have been the final nail-in-the-coffin for DOGE has so far had minimal effect on the price.
The daily chart shows a clear triangular price formation, defined by a descending trend line at $0.1990. The trend from the 7th of June has been a reliable area of resistance, capping all attempts to break higher over the last five weeks.
Furthermore, a supportive trend line at $0.1586 can trace its roots to the January $0.0056 high. And therefore should be viewed as a significant level of price support.
Presently, DOGE is wedged between these restrictive barriers and struggling for clear direction. Notably, the presence of the 200-day moving average at $0.1799 clouds the outlook.
The Dogecoin price has straddled the significant long-term sentiment indicator for the last three days. And until the price decisively breaks the grip of the 200 DMA, it could swing either way.
If DOGE clears $0.1990 on a closing basis, the price may extend to the 50 DMA at $0.2720. However, a failure to maintain $0.1586 could promote a leg down to $0.1000, targeting the beginning of the uptrend.
As I write, DOGE is closer to breaking up than breaking down, although either event is possible.
Therefore, although I am cautiously optimistic, the emphasis is on caution.
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