Dogecoin Price Movement Analysis for 16th April, 2021

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The Dogecoin price is on a parabolic rise, with the highly-controversial cryptocurrency up by more than 90% in the last 24 hours. In the way, the coin has re-entered the top ten crypto charts.

Its gross market capitalisation has risen to more than $33 billion. It has also pushed famous digital tokens like Litecoin, Bitcoin Cash, and Stellar out of the market. Most notably, DOGE is now worth more than well-known firms such as DropBox, Box, StitchFix, and WayFair.

What happened: Dogecoin has become the talk of the crypto world after Elon Musk appeared to re-endorse the currency. Mark Cuban’s Dallas Mavericks have also welcomed the digital coin by including it on their balance sheet. The currency has also risen as a result of its growing popularity, especially on social media. Indeed, as seen in the graph below, Dogecoin is the most common trending search term in the United States.

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Meanwhile, the price of Dogecoin has risen since the famous Wall Street Bets Reddit page began accepting the currency. The platform also allowed for Bitcoin and Ethereum discussions. It formerly has a no cryptocurrency stance. As a result, analysts expect that the platform would increase purchasing pressure.

To be honest, doing a technological review of DogeCoin is an extremely difficult challenge due to its recent instability. In reality, the Average True Range (ATR), a strong indicator of uncertainty, has reached its highest level on record. The price is already far higher than all moving averages.

As a result, I believe that this momentum will continue as we approach the weekend, as bulls attempt to break through the key resistance level of $0.30.

However, due to the uncertainty, we cannot rule out the possibility of a significant price drop. Remember that in most situations, sharp rises contribute to much sharper declines, a phenomenon known as pump and dump.


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DOGE chart

Dogecoin Price

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