Dogecoin Skyrocket 15% Following Elon Musk’s Lawsuit Victory
In the 4-hour chart, the Dogecoin price is currently experiencing a pullback trend after struggling to bounce back. Despite this, there are indications of a potential bullish run as DOGE resurfaces above the $0.10 mark.
The meme coin is currently at a critical juncture, finding support at $0.084 after a significant correction in late July and early August. It is currently consolidating between the 23.60% and 50% Fibonacci levels at $0.097 and $0.111, respectively. Following a failed bullish breakout rally attempt, Dogecoin retested the 23.60% Fibonacci level after dropping below the 38.20% level at $0.10.
DOGE Receives Boost
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Although the price has risen by 5.53% over the past three days, it has yet to reach the 38.20% Fibonacci level at a specific value. The MACD indicator shows a bullish crossover, indicating momentum in the recovery run, while the 4-hour RSI line demonstrates a bullish divergence, further supporting the potential for an uptrend continuation.
On-chain indicators from IntoTheBlock provide a mostly bullish signal for Dogecoin. Approximately 70% of holders are in profit at the current price, and 67% of the holders have been holding for over a year. The increase in large transactions by 2.43% and the bid-to-ask volume imbalance by 2.28% also give a buy signal.
Additionally, the global in and out of the money indicator reveals that 42.54% of Dogecoin volume is in the money, while 49.44% is out of the money, and 8% is at the money within the range of $0.096 to $0.1043.
Price Action
As Dogecoin price gains momentum, there are potential key levels to watch. If it breaks the 38.20% Fibonacci level, it could face supply pressure at $0.111 or $0.1180, representing a 15% upside. Conversely, there is support at $0.090 and $0.084 below the $0.097 level.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
