The cryptocurrency market is attempting a recovery after yesterday’s selloff. Dogecoin (DOGE) saw a sharp buying rally on Dec. 14 after Tesla CEO Elon Musk announced that Tesla would begin accepting it for some purchases. Musk had tweeted ”Tesla will make some merch buyable with Doge & see how it goes”. Dogecoin price reacted to the news by rallying nearly 48% to reach intraday highs at $0.221. At the time of writing, DOGE was exchanging hands at $0.1827. Dogecoin ranked 10th largest with a market capitalization of $25.22 billion according to CoinMarketCap data. According to whales’ surveillance website, WhaleStats, Dogecoin tops most traded token by the top 1000 BSC whales over the last 24 hours amid the latest price surge. IntoTheBlock on-chain analytics notes a 50% increase in large transactions for Dogecoin suggesting whales’ activity may have contributed to the recent climb.
Key Levels
Resistance levels: $0.3500, $0.3000, $0.02337
Support Levels: $0.1504, $0.1220, $0.0500
DOGE/USD Daily ChartDogecoin posted a strong rebound from the Dec. 13 market selloff of $0.15. The medium-term oscillators suggest an increase in positive momentum for now. The RSI indicator is approaching the neutral region after a steep rise from the oversold levels. If buyers push above today’s high at $0.222 beyond the moving averages 50 and 200 at $0.230 and $0.250 respectively.
The next barrier might come in at the $0.30 and $0.350 levels. Climbing higher, the $0.46 level could open the door for steeper increases in the near term. Otherwise, in case of declines, the price could find support at the $0.15 and $0.125 levels.
DOGE/USD 4-Hour ChartDogecoin price is returning below the 4-hour MA 200 at $0.2100. If the price declines further, the next barrier to have in mind is the MA 50 around $0.1730 at the time of writing. In case of deeper moves, DOGE price could challenge once more the $0.15 level. However, the pair has been developing within a triangular range since the end of October.
If a breakout ensues and DOGE/USD surpasses the $0.22 and $0.24 levels it could move towards the $0.35 and $0.46 levels. Clearing these levels till the $0.60, the upside pressure could drive the price until the next major resistance at $0.76 where it topped in May. The very short-term bias remains neutral although more positive actions would be created above the moving averages.
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