After the cryptocurrency market witnessed some more selling on Sunday, bulls were able to come into the fray with some dip-buying, pushing the price of Dogecoin and other major cryptos higher on Monday.
The recovery movement has very little to do with Elon Musk’s tweet, in which he reiterated his support for cryptos over fiat. There was no mention of Dogecoin in his tweet.
Elon Musk continues to face scrutiny from the crypto community after his perceived role in the crash of Bitcoin which liquidated a record amount of cash lodged in long positions. There is also scrutiny over a Dogecoin wallet that is said to have held $22 billion worth of Doge tokens prior to the market crash.
Dogecoin remains a critical barrier, which needs to give way for the recovery move to become a full-scale uptrend resumption. Dogecoin is up 8.75% on the day.
Technical Levels to Watch on Dogecoin
The DOGE/USDT daily chart shows a falling wedge, which could be a sign that Dogecoin’s price could recover in the short term. For this to happen, the price candles need to break above the wedge’s upper border and the 0.34 resistance (78.6% Fibonacci retracement level), targeting the resistance zone between 0.39 and 0.43. A move towards 0.50 completes the measured move from the triangle’s break.
On the other hand, a rejection at the 0.34 resistance/wedge’s upper border sends the DOGE/USDT pair towards 0.29 initially (30 April and 20 May lows), with increased downside pressure bringing in 0.24 and 0.20/0.22 into the picture as additional targets to the south.