Dogecoin Price Analysis: DOGE Piggybacks on Elon Musk Hype Ignoring Widespread Cryptocurrency Correction
- Dogecoin rallied nearly 800% in two weeks, hitting new all-time highs of $0.45.
- DOGE steadies above $0.33 after ignoring the weekend sell-off in the cryptocurrency market.
- Dogecoin must secure higher support to avoid losses that are likely to extend to $0.25.
Dogecoin, the darling of the cryptocurrency market, has this April broken multiple barriers to hit new high after new high. The meme coin continues to rise to stardom, making it the top ten leading crypto assets by market capitalization. Despite the freefall in the market this past weekend, DOGE shot up to $0.45.
Dogecoin Bulls Battle for Higher Support
Dogecoin teeters at $0.336 at the time of writing. On Sunday, the massive retreat across the market saw the meme coin rejected from $0.45. However, support was immediately secured at $0.25, allowing buyers to take control.
At the time of writing, the primary goal in the bullish camp is to secure higher support, preferably above $0.33. Here, stability will be guaranteed as more investors stream into the market, anticipating a breakout above $0.45.
DOGE/USD Four-Hour Chart
The transaction model by IntoTheBlock shows that Dogecoin is still in price discovery. DOGE sits on top of immense support but faces no defined resistance on the upside. The IOMAP reveals that the region between $0.293 and $0.297 is the most robust buyer congestion zone. Here, around 48,200 addresses had previously bought nearly 7.8 billion DOGE. It would be challenging for sellers to break under this zone.
Dogecoin IOMAP Chart
Looking at the Other Side of the Picture
It is worth mentioning that the Relative Strength Index (RSI) has a negative divergence, bringing to light the possibilities of a potential correction. An RSI negative divergence occurs when an asset’s price forms a higher low pattern while the indicator drops considerably, creating a lower high pattern. As the divergence widens, the bullish outlook weakens while bears prepare for takeover. Therefore, it is very likely that a reversal would soon take place.