A tweet by Elon Musk on an apparent Dogecoin purchase for his son to become a “toddler-hodler” sparked off a renewed buying frenzy a few minutes after the post, sending the price of Dogecoin 20% higher.
Elon Musk had set off a delayed interest in Dogecoin with a series of tweets that eventually caused the coin to spike close to 1000%.
A $1.5billion move on Bitcoin by Tesla set off the latest bull run in the BTCUSD pair, just two days before the latest in what is gradually becoming the Musk-pump action on cryptos.
Technical Levels to Watch
We proceed to the 4-hour chart where we see that an interesting formation is in the works. A symmetrical triangle has formed, and if the previous price action is to be taken into account, we could see this pattern as a bullish pennant as well. Today’s surge found resistance at the 0.08077060 price level. This is the level to beat for buyers. A break above this point completes the expected direction of the breakout, targeting 0.08855171 in the first instance.
On the flip side, a breakdown of the triangle allows recent lows at 0.06738710 to come into play. If the decline continues, then the 0.05795496 price level becomes the next target (23.6% Fibonacci retracement), followed by the 0.04831392 price level (38.2% Fibonacci retracement level).
DOGE/USD Daily Chart