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It has been a classic move for major cryptocurrencies to rally in 2021 on the basis of good fundamentals. Ethereum is a clear example, but the rise of MATIC, Uniswap, Polkadot, and Cardano are all instructive. However, when it comes to Dogecoin, that specific textbook has been tossed out the window or chewed on, depending on your preference.
The memecoin leader and Elon Musk’s favourite held its own through the recent market corrections, avoiding any severe drops.
Every cryptocurrency had a 30%-40% fall, and DOGE was no exception. What was remarkable was that all of the damage was limited inside that margin, which should not have been the case given that it is a memecoin!
Following a lengthy consolidation period, a crucial news has provided additional fire to DOGE’s ascent, and it may potentially rebound ahead of Bitcoin.
Coinbase: Doing God’s work for Dogecoin hodlers?
Until a few days back, Dogecoin’s ecosystem lacked any development. The price wasn’t really testing any resistance level, and there was consistent depreciation on the charts. Until very recently.
Coinbase announced on 2 June that the exchange had listed Dogecoin and trading will begin at 9 am PST on Thursday. While CEO Brian Armstrong had mentioned Dogecoin’s listing at an earnings call last month itself, the price impact was still evident at press time.
Dogecoin pumped by 15% yesterday and at the time of writing, was close to moving past a critical supply zone, one which should have acted as a range of high selling pressure.
As shown in the chart above, Dogecoin had been stabilising near the supply zone for a few hours at the time of publication. The top level of the zone has already been violated, indicating invalidation in the face of significant selling pressure. Along with such situation, Dogecoin’s price movement depicted a bullish pennant. Any big breakout from this area, a clear hint of a likely rise, should allow Dogecoin to climb all the way up to $0.55.
It is critical to notice that a good break from the bullish pennant is required in this case. If the pattern is exited in the other way, there is a chance of a fall breakout.
There is still no fundamental help!
Unsurprisingly, on-chain metrics remain underwhelming for Dogecoin. According to data, the number of active addresses and new addresses joining its chain, remains minimal, mirroring an average witnessed regularly in early 2021.
One important truth remains: Dogecoin’s connection with Bitcoin is still quite high. However, Bitcoin is going much more cautiously, which may allow Dogecoin to surpass BTC once again. With Coinbase trading for Dogecoin launching in the coming hours, the price activity for DOGE might get very intriguing.