The price trajectory of Dogecoin has been significantly influenced by Elon Musk’s tweets about the meme coin in recent weeks and months. Notably, Dogecoin ascended past the $0.1589 mark in November 2022, following Musk’s acquisition of Twitter. Since then, however, DOGE has been on a pronounced downtrend.
The anticipation of Musk introducing Dogecoin as a payment method on Twitter remains palpable within the DOGE community. However, outside this sentiment is not shared, underscored by the stark decline in DOGE trading volume, suggesting a diminished presence of speculators and traders.
If Musk does integrate DOGE on Twitter, the price reaction is likely to be swift. But what is a good entry price?
Monthly Chart DOGE/USD
While many older altcoins are plumbing new lows, Dogecoin exhibits a more resilient sideways accumulation pattern on its monthly chart. This chart reveals that the $0.0480 mark is pivotal for Dogecoin. Should DOGE maintain its stance above this price, it could present a viable opportunity for long-term spot investors.
This price level is especially interesting as it coincides with the 100-week EMA at $0.04886. However, it’s imperative to acknowledge the inherent unpredictability associated with Dogecoin’s long-term trajectory, given its meme coin status.
Weekly Chart Dogecoin
The 1-month chart delineates a clear downtrend. DOGE could fall towards the lower trendline at $0.0480 before another run towards the upper trendline at $0.075. Remarkably, the 30-month low of June 2022 is also located near the trend channel low at $0.0488.
If DOGE bounces up from here, the price would have to face the 61.8% Fibonacci retracement at $0.0909. A retest of the breakout from the downtrend could occur here. If the bulls succeed, the 50% Fibonacci retracement level at $0.1093 and the 38.2% Fibonacci retracement at $0.1169 could come into focus. The final target is the November 2022 high at $0.1589 where huge selling pressure is to be expected. At current price, DOGE would need to gain over 150% to reach this level.
Daily Chart DOGE/USD
The 1-day chart underscores the persistent downtrend Dogecoin has been grappling with since December of the preceding year. This downtrend, demarcated by a descending trend channel, remains unbroken. Late in July, DOGE recoiled from the…
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