Dogecoin price broke-out during the weekend after Elon Musk continued supporting the currency. The price rose to an all-time high of $0.08, which is just 15% below the important resistance at $0.10.
What happened: Dogecoin price has been on a tear recently making it one of the biggest digital currencies in the world. Precisely, its total market cap has surged to more than $9.15 billion, making it the tenth-largest cryptocurrency. The currency has also gained by more than 1,500% this year, outperforming many currencies.
The recent rally is mostly backed by actions of Elon Musk, the SpaceX and Tesla CEO, and the world’s richest man. He started publicly supporting the currency a few weeks ago and he also continued doing the same during the weekend when he sent the following tweet. Therefore, while nothing has fundamentally changed recently about DOGE, investors are optimistic because of its prominent backer.
Dogecoin price prediction
Two weeks ago, I wrote that Dogecoin price was down but not out. At the time, the currency was having a large sell-off because of the Wall Street Bets (WSB). However, looking at the daily chart, I found that the sell-off was mostly a consolidation pattern known as a bullish pennant.
In the past few days, the currency moved above the pennant and all the short and long-term moving averages. Therefore, in my view, the momentum of the DOGE price will continue so long as Musk has its back. The next key level to watch is $0.1, which it will possibly test this week. The invalidation point for this prediction is if the price falls back to $0.032.
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DOGE price chart