Dogecoin price snapped a five-day winning streak on Wednesday in a market-wide pullback for cryptocurrencies. DOGE was down by 2 percent at the time of writing, trading at $0.373. Market leader, Bitcoin, was also down by 0.7 percent, while Ethereum was at -2.8 percent. This signals a potential onset of a pullback after the recent breathtaking market rally.
However, despite hitting a bump, the pause in the uptrend isn’t out of character with a market rally. The 2020/2021 rally was typified by high levels of volatility, as traders paused intermittently to take profit. If that comes into play in this cycle, the crypto market rally is likely to continue. Importantly, the Donald Trump-driven market frenzy is still in play, and the sentiment surrounding the market will provide fuel for further uptrend.
President-elect Trump announced on Tuesday that he had appointed Elon Musk to head the newly-created Department of Government Efficiency (DOGE). The move is significant for Dogecoin price sentiment. Musk is not only the one who began selling the idea of its establishment in October but also the meme coin’s most iconic supporter. Even though Dogecoin has no defined role in the department, the publicity generated is good for maintaining upward traction.
Dogecoin price pivots at 0.373, and the uptrend will prevail if action stays above that level. With the buyers in control, the price will likely move up and encounter the first resistance at 0.387. However, if they extend their control, the momentum could break above that level and test 0.394.
On the other hand, moving below 0.373 will favour the sellers to be in control. In that case, the price will likely move lower to find the first support at 0.362. However, if the momentum strengthens, the price could break below that level and invalidate the upside narrative. Also, a second support level could come at 0.351.
This post was last modified on Nov 13, 2024, 09:04 GMT 09:04