Dogecoin has gained 30% after US crypto exchange Coinbase says it will introduce trading on Dogecoin tokens. But the major mover on the day came from Dogecoin’s biggest fan, Elon Musk. Musk came back into the news after tweeting about future collaborations with the network’s developers.
In a viral tweet, Elon Musk said he would work with Dogecoin’s developers to improve the transaction efficiency within the network’s systems. This tweet spurred a round of renewed buying on the pair that sent Dogecoin sharply higher.
Musk had come under a lot of online heat after Tesla decided to put on hold plans to accept Bitcoin as a payment option, citing environmental reasons. He had posted a poll on his Twitter handle as to whether Tesla should accept payments in Dogecoin instead. The notion has large support in results obtained so far.
Dogecoin is testing the resistance at the 0.54 price area after a strong bounce from the demand zone (which I called for a buying re-entry region in a private class I taught two days ago. This resistance must be uncapped for the 23.6% Fibonacci retracement at 0.62 to come into the picture as the next target. From here, additional targets are seen at 0.70 (psychological resistance and 9 May high) and at 0.74 (all-time high).
On the flip side, a rejection at 0.54 could allow for another corrective pullback which tests 0.49 (50% Fibo retracements from the 18 April swing low at 0.24 to the all-time high point on 8 May). Below this level, the demand zone at 0.39-0.43 becomes the downside target. The low of 13 May marks an additional downside target. This marks a potential dip-buying area for the future if Dogecoin holds its bullish momentum.