The Dogecoin price has gained 45% in two days. Elon Musk continues to pump his pet project as a monster ‘whale’ is revealed.
Over the last 2 years, someone has been accumulating DOGE in a big way. Since February 2019, one buyer has accumulated 37.6 billion coins, around 28% of the available supply.
The current price of $0.3510 values the holding at around $12.7 billion. While the internet may be alight with the rumor that Musk is the mysterious holder, the wallet more than likely belongs to a crypto exchange.
The buying started around the same time Musk first tweeted about the coin. This has further fueled the speculation that he may be the whale. His continued fascination with the meme coin not only keeps the rumor mill turning. But also keeps a bid under the price.
Whether it’s true or not, I can’t deny that the Dogecoin price keeps defying gravity.
We can see on the 2-hour chart that DOGE set an ATH of $0.7400 on the 8th of May. Since then, the Dogecoin price has been descending in a widening wedge pattern. Aside from the flush down to $0.2120 on the 19th, the price has remained within this channel.
DOGE is currently close to testing the top end of this channel at $0.4000. It will be interesting to see if the price momentum can clear the upside barrier. There is likely to be fresh momentum buying on clearance, which could target the $0.5000 level.
Longs initiated on the break should be closed if the price reverses below yesterday’s $0.3200 low. This would suggest the downtrend remains dominant.
However, the top end of the channel has been a good area of resistance for DOGE. A failure to clear the line could result in the price rolling over and continuing its decline.
My advice for DOGE traders is to follow Elon Musk on twitter. Remarkably the social media feed is a key driver of the price.
Follow Elliott on Twitter.
