Dogecoin is moving into the weekend on a bearish mode. After a week that signalled a bullish trend, Elon Musk’s favorite coin is now showing bearish signals that may trigger a selloff or a buy by traders who want to leverage the dip.
Dogecoin’s performance this week was attributed to support from the broader crypto market. Bitcoin recovered slightly after the millions worth of cryptocurrency was recovered from hackers involved in the Colonial Pipeline hack. In the process, around 63 bitcoin was recovered with a value of around $2.3 million.
In addition, the crypto market recovered after El Salvador, a country in Central America, started accepting bitcoin as legal tender.
Also the Basel Committee news on banks capital requirements for holding crypto was initially taken bullishly, although there has been some selling since on the realisation that if the rules come in as proposed it would make it very onerous for banks to hold assets such as bitcoin on their books. Some crypto purists see keeping banks out of crypto as a good thing, but that could stall institutional adoption.
Despite the weekly gains from market support, dogecoin seems to be retreating to a bearish zone. At the time of writing, DOGE was trading at $0.324 on major exchanges, representing a 2.6% decline.
Dogecoin Price Analysis
Looking at the chart above shows that dogecoin is still above its lower support level of $0.321, but it may retreat to that level to retest the support. If dogecoin pushes lower from that support level, the next stop will be at around $0.295.
However, the coin may gain support from the broader crypto market and thus it may resist a breakdown at $0.312. In case this happens, the meme coin may bounce back to the retracement zone of above $0.35.
With the coin now trading at $0.324, it makes it a great buy because it has already resisted its breakdown and may be edging towards a resistance of $0.39. If a rally causes DOGE to break the resistance level this weekend and next week, the coin may move on to stop at around $0.45.
Dogecoin still has a long way to go before reaching an all-time high of $0.75, which was attributed to Elon Musk. This week, the coin has made headlines that may trigger a bull run soon.
Is the Kemper dogecoin project bullish for price?
Kyle Kemper, the half-brother to the Prime Minister of Canada, announced he will be launching his own dogecoin project. Kemper is the founder of the crypto wallet and card Swiss Key. Speaking at the Bitcoin 2021 conference in Miami last week, Kemper launched an event called ‘Million Doge Disco’ where he would contribute one million DOGE tokens.
Kemper said that the tokens would be given to participants of ‘augmented reality Disco Doge NFTs.’ Kemper’s announcement is not the only mention of DOGE and NFTs this week.
Billy Markus, the co-founder of dogecoin, announced that he would be selling several DOGE-inspired NFTs. Markus plans to sell 420 DOGE collectibles. With the NFT craze picking up, dogecoin stands a solid chance of regaining momentum if it ventures to the area and becomes one of the few coins that are cashing in on the boom of NFTs.
How to buy dogecoin
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