Dogecoin is once again trending on Twitter. Truly, it owes half of its popularity to Twitter, and Elon Musk’s support for Dogecoin is no more a secret now.
SpaceX and Tesla’s CEO provided a major boost to Dogecoin. He said the company would accept Dogecoin for merchandise. However, it is a beta test and carried out primarily.
Indeed, Dogecoin is a big achievement, and it holds the potential to be a cross-border currency like Bitcoin. Dogecoin price went up significantly after this announcement on Twitter.
However, investors must remember that Tesla had once announced that it would accept Bitcoin for car purchases, but later it stopped accepting BTC for environmental issues. Let’s not be too excited about the news; otherwise, Dogecoin will also face the same fate.
In 2013, Dogecoin was created by software engineers Jackson Palmer and Billy Markus. Dogecoin was a fun alternative to Bitcoin because the transaction fees were lower than Bitcoin. Now, it is a part of the top 10 largest cryptocurrencies globally.
Let’s find more details and analyze the price chart of Dogecoin!
At the time of writing this post, Dogecoin is $0.17 and consolidates in the range of $0.16 to $0.30. Like many other cryptocurrencies, it is also moving sideways, and now it is standing on its support level and creating an excellent opportunity to invest for the long term.
However, investors must know the right price for this coin to invest in. Before that, let’s analyze the technical tools and find out the current momentum of DOGE.
The RSI is 40, which is stable. The MACD chart is also showing bullish momentum. On the other hand, the Bollinger Band shows a lack of volatility and bearish signals because the last few candlesticks are below the baseline in the lower half of the BB. The Moving Average is not strong as well.
In the last couple of months, most cryptocurrencies have been moving sideways. Well, it gives you a good opportunity for swing trading. If you are a short-term investor, it is the ideal opportunity to invest for at least six months.
If you are a long-term investor, you should wait for a breakout before investing in cryptocurrency. However, if you understand the potential of Dogecoin and have faith in the coin, you may start investing now.
Please remember that if it breaks the support level of $0.16, the next support level will be $0.05. If you want to invest, please maintain a stop loss of $0.13.
Traders must keep an eye on the coin, as it is trending on Twitter, and there are high chances that it may start another bullish run from next week.