Cryptoanalysis: Dogecoin crashes after Twitter logo removal

Dogecoin, the eighth largest cryptocurrency, is almost back to zero. After the massive increase in the coin due to the integration of the Dogen logo in Twitter, the coin is now experiencing a steep drop and is close to the level it was before the rapid rise. This decline is due not only to savvy investors taking profits and selling their investments, but also to the actions of Elon Musk himself. Musk removed the Doge logo from his platform yesterday, leading to much-needed sales volume.

In today’s analysis, we took the Dogecoin chart and zoomed in on the current price action. We’ll start by discussing the Twitter-induced uptrend and analyzing which support levels are important on the way back.

We also take a closer look at the weekly chart and see that the price moves up and down. This has driven the price to a point where a breakout in either direction will determine the future trend of that coin in the coming months.

The huge increase has almost disappeared

it will happen to you. You buy some dogecoins in the middle of the day last Monday to make some profit in the future and in two hours the coin shoots up above 37%. It doesn’t get any better than this!

But then of course you have to have made a profit…

DOGE/USDT 1H

This happens to many. The big increase makes him very happy, but it doesn’t bring any profit because of the FOMO feeling that the coin can go much higher. Of course it is possible. This memecoin has shown huge increases many times before, but the 10 cents was really the highlight this time. After that, the price direction quickly changed and the value of the coin dropped like a pudding.

At the moment, the price of Dogecoin is already more than 20% below the peak and stable support has not yet been found. Looking at the previous price action, it makes sense that the $0.079 level offers at least some form of support. If it’s still too weak, the 7.1 cents are left. Price will certainly find support here.

We continue…

The weekly chart shows a neutral picture. So far there is no bullish confirmation as no weekly candles have closed above the red resistance line. On the other hand, there is also no reason to expect many red candles as the green support line is still intact.

Soon there will be more clarity about the direction of the course. The price is currently being driven to a point and the coming weeks will be crucial in which direction the price will go. Will the price break below the green support line or break above the red resistance line?

DOGE/USDT 1W

Let’s face it: the future trend of altcoins will largely depend on Bitcoin. Since altcoins generally follow the trend of Bitcoin, it is important to keep abreast of the price development of the largest cryptocurrency.

As I stated in my analysis yesterday, I see Bitcoin correcting towards $25,000 in the coming period. This solution also affects Dogecoin. A retest of the green support line you see in the chart above is a realistic scenario. After this retest, we need to keep a close eye on the weekly closes to confirm the trend direction.

Source: Btc Direct

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