Dogecoin Spiked 20% As Elon Musk’s Son Becomes the New DOGE Hodler

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Written By: Eno Eteng (MSTA)
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    Summary:
  • A tweet by Elon Musk on doing a long-term purchase for his newborn son Lil X has triggered fresh demand on Dogecoin, sending it 20% higher.

A tweet by Elon Musk on an apparent Dogecoin purchase for his son to become a “toddler-hodler” sparked off a renewed buying frenzy a few minutes after the post, sending the price of Dogecoin 20% higher. 

Elon Musk had set off a delayed interest in Dogecoin with a series of tweets that eventually caused the coin to spike close to 1000%. 

A $1.5billion move on Bitcoin by Tesla set off the latest bull run in the BTCUSD pair, just two days before the latest in what is gradually becoming the Musk-pump action on cryptos.

Technical Levels to Watch

We proceed to the 4-hour chart where we see that an interesting formation is in the works. A symmetrical triangle has formed, and if the previous price action is to be taken into account, we could see this pattern as a bullish pennant as well. Today’s surge found resistance at the 0.08077060 price level. This is the level to beat for buyers. A break above this point completes the expected direction of the breakout, targeting 0.08855171 in the first instance. 

On the flip side, a breakdown of the triangle allows recent lows at 0.06738710 to come into play. If the decline continues, then the 0.05795496 price level becomes the next target (23.6% Fibonacci retracement), followed by the 0.04831392 price level (38.2% Fibonacci retracement level).

DOGE/USD Daily Chart

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.

Published by
Written By: Eno Eteng (MSTA)