Dogecoin escaped the cryptocurrency bloodbath that occurred on Sunday, April 18, as it was able to register a 22% upside move following Saturday’s retracement.
Part of the reason why Dogecoin literally “dodged” the bullet is the news of a major Dogecoin purchase by an unknown entity, to the tune of $892million. This information, which was pulled by a Twitter user off BitInfoCharts is yet to be confirmed. However, markets tend to move on rumors and the crypto market has shown extreme susceptibility to rumors.
It may be interesting to point out that today’s crypto selloff was triggered by an unconfirmed tweet that gained traction and went viral, panicking crypto holders into dumping their holdings.
Technical Outlook for Dogecoin
The DOGE/BTC 4-hour chart is shown with the various Fibonacci retracement levels after being traced with the swing low of 11 April to the swing high of 16 April. After a retracement to the 50% Fibonacci level from its ATH, Dogecoin found upside momentum and has resumed the push to the 23.6% Fibonacci level, which is the intraday high at 562 satoshis. A break of this level targets the current ATH at 740 satoshis, after which we could see a push towards the psychological price level at 800 satoshis.
On the flip side, a pullback from the 593 satoshis level targets the 500 satoshis psychological support, with the 422 satoshis price level at the 50% Fibonacci price level serving as the additional support area.