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Price Analysis

Dogecoin Looks “Pumpy as Hell,” will DOGE/USDT Bulls Clear $0.30?

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Dogecoin is a popular cryptocurrency.

We got Elon Musk in the mix—and his millions of followers are ardent followers.

As if this is not enough, Dogecoin is now one of the most valuable crypto projects around.

Its valuation of over $35 billion exceeds some of the world’s most “well researched and serious” projects out there like Polkadot and IOTA, for example.

Dogecoin Market Status and Performance

At the time of writing, Dogecoin is stable, adding three percent versus the greenback.

However, this is not to say it is limited to the upside.

For perspective, DOGE is up an impressive 78X year-to-date, adding 35 percent last week alone.

Meanwhile, trading volumes might have decreased. Nonetheless, DOGE’s performance directly affects the level of participation, as history shows.

Therefore, if there are expected gains in the upcoming session, those who missed out in earlier expansions might flow back, helping pump the coin.

Indeed, the volatility of the coin plus the support primarily from Elon Musk that’s drawing attention—and yes, liquidity to Dogecoin—one of the earliest cryptocurrency projects started as a joke.

Dogecoin Price Daily Chart for Aug 13

From the daily chart, DOGE/USDT is recovering. There is a double bottom with support at June and July 2021 lows.

The break above the middle BB could be the basis of more gains in completion of the W-formation, possibly towards June 2021 highs of $0.40.

Notably, the reaction at the middle BB—one of the most popular technical cryptocurrency indicators—signal strength, an opportunity for traders who can deploy various swing trading strategies to their benefit.

Additionally, most interestingly, DOGE bulls are resilient, soaking in selling pressure as evident in today’s Asian and European sessions.

Dogecoin Ready for a Liftoff, DOGE looks “Pumpy as Hell”

Because of anticipated gains and favorable technical indicator alignment in the daily chart, traders are upbeat.

For instance, based on price action in the 4HR chart, one trader on Twitter expects DOGE to find a fair value at $0.86. At spot levels, therefore, DOGE stands to surge 3X to this reaction level.

He explains that DOGE/USDT prices move in pulses, the next value area being around $0.34. If this turns out to be accurate, then Dogecoin holders’ dream of the coin being at parity with the greenback would come true.

It is the same line of thought held by another trader.

From the daily chart, he observes that DOGE/USDT is within a bullish breakout pattern. This is “too hard to ignore,” and that the seventh largest coin by market cap is due for another “great pump.”

Another also describes DOGE/USDT price action as “pumpy” as hell. In his Dogecoin technical analysis, the current lift-off could thrust the coin to $0.35.

Dogecoin will “Fly,” DOGE/USDT Forms an “Adam and Eve” Double Bottoms

In Trading View, a technical analyst thinks DOGE prices are ready to fly.

Dogecoin Ready to Fly

Of note, the trader discovers double bottoms in the daily chart, a formation that’s anchoring the current leg up.

If DOGE prices continue to print higher, the next targets would be $0.35 and $0.40.

Even so, there are concerns from a technical perspective.

The DOGE price higher high is at risk of being unwound due to the bearish divergence forming in the 4HR chart.

The RSI is turning from the overbought territory against prices that are climbing higher, likely to breach $0.30 in the short term.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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