- Summary:
- Dogecoin price sent mixed signals on Tuesday with some gains after Elon Musk's X post, but its steep decline in early August set a bad tone.
Dogecoin price rose for the second day in a row on Tuesday, gaining more than 3 percent on the daily chart at some point before easing to 0.6 percent at the time of writing to trade at $0.102. The meme coin has struggled to gain upside momentum for the last two weeks after its successive ten-day decline between late July and early August. That steep decline generated a bearish sentiment that has usurped the latest social media posting by DOGE’s most popular fan, Elon Musk.
Musk posted a picture on his social media site, X, pausing as an executive in the Department of Government Efficiency. As usual, Dogecoin’s active user community was keen to find clues in the posting, concluding that the words Department of Government Efficiency was an abbreviation for the word “DOGE” That triggered an upswing in the price, but the momentum fizzled out a few hours later. Notably, the crypto bellwether, Bitcoin, set the tempo for Tuesday’s market recovery with a retest of the psychological $60k mark. However, it couldn’t sustain the upturn, and slipped back below that mark hours later, sending bearish ripples across the markets.
Dogecoin price momentum
The indicators on the 2-hour DOGE price signal that the sellers are taking over the market. First, the asset has recently broken below the Volume Weighted Moving Average line. However, the RSI is at 51, telling that there’s a bullish undercurrent that could switch the momentum to the upside if the price stabilises above the VWMA line.
Support and resistance levels
The sellers currently have control of the market, as resistance persists at the 0.1036 pivot mark. The resulting momentum will likely set up the first support at 0.101. However, the sellers could breach that level and test 0.099 if they extend their control. On the other hand, a move above 0.103, will favour the buyers to take control. In that case, the first resistance could come at 0.105, but if the buyers extend their control, they could break above that mark and invalidate the downside narrative. Furthermore, the resulting momentum could strengthen the upside movement to test 0.108.
