Dogecoin price has held relatively well in the past few weeks. The coin rose to a high of $0.0670 on Wednesday, which was the highest level since September 24th of this year. DOGE has risen by more than 16% from its lowest level in September and by 33% from its YTD low.
Why is DOGE rising?
Dogecoin’s price performance is notable because of the overall market sentiment in the past few months. Volatility has surged while the fear and greed index has fallen to the lowest level in months.
Interestingly, DOGE has done well in a period that American stocks have plummeted to the lowest level in months. The US dollar index rose to the highest point in more than 20 years in September. Historically, Dogecoin and other risky assets tend to underperform the market in such market conditions.
Dogecoin price rose in the overnight session after Elon Musk decided to go through with his Twitter acquisition. Musk, who is the richest person on earth, will buy the company for $44 billion, which seems like a really expensive bet. He decided to go through the purchase after realizing that he would not win the case in Delaware.
Musk’s acquisition for Twitter is notable because he is also a big believer in Dogecoin. A few months ago, he said that he would allow micro transactions to happen on Twitter using Dogecoin. Still, it is unclear whether this buyout will have a real impact on the coin’s demand.
Dogecoin price forecast
The daily chart shows that the DOGE price has been in a consolidation phase in the past few days. In this period, the stock remains at the 25-day and 50-day moving averages. At the same time, the coin has failed to move below the important support level at $0.049, which was the lowest level this year. It also seems to be forming a head and shoulders pattern.
Therefore, there is a likelihood that the coin will have a bearish breakdown in October. If this happens, the next key level to watch will be at this support at $0.049, which is about 25% below the current level. A move above the resistance at $0.08 will invalidate the bearish view.