- Dogecoin price is recovering after two days of very nervous trading.
- DOGE price is likely to confirm its gains with a rebound from the $0.1357 technical level.
- Expect to see a bounce towards $0.1594, which would translate to a 17% gain during the day.
Dogecoin (DOGE) price saw some jittery price action on Monday and Tuesday. Earlier in the week, Dogecoin excelled on the backlash of Elon Musk buying Twitter, sparking a Musk-related rally in cryptocurrencies. But on Tuesday, sentiment changed with stocks hammering and weighing on cryptocurrencies that saw strong selling and rapid profit taking, triggering a full pairing of the gains incurred. Expect to see an upside today as investors look past the noise, which should push the price of Dogecoin up to $0.1600, resulting in a gain of 17%.
DOGE Price Returns to Favor and Set to Lock in 17% Gains
The price of Dogecoin must give investors headaches after first rising 20% on Monday and then falling 13% on Tuesday. The reason for this was that Dogecoin was tied to Elon Musk and the confirmation that he had reached a deal to buy Twitter, which caused his favorite cryptocurrencies to rise again. But markets poured cold water on that sentiment on Tuesday. Investors were shocked by disappointing results accompanied by several warnings for the following quarters. Businesses have seen inflation eat into their profit margins, forcing them to raise prices sooner. To make matters worse, with shutdowns in China, supply chain disruptions could cause more problems in subsequent quarters if sales fall below estimates.
The DOGE award sees investors looking beyond all of this and hailing the supportive policy of the Chinese government opening its coffers and seeking to upgrade infrastructure in China. This should help speed up shipments and could help resolve any supply chain issues fairly quickly. With this newfound confidence and ease, expect DOGE price to rally back to $0.1594, where a close above the R1 monthly resistance level could set the stage for a continuation towards $0.1750 and lead a retest of the 200-day simple moving average (SMA). .
DOGE/USD daily chart
Investors could be scared again if Facebook or Apple’s earnings today or tomorrow disappoint. With the Nasdaq index falling, a spillover into cryptocurrencies could easily ensue and see DOGE fall back to the pivot level at $0.1357. If DOGE price slides below the 55-day SMA coinciding with the monthly pivot at $0.1339, expect an acceleration with a stabbing move down to $0.1137, towards the S1 monthly support level.