Dogecoin (DOGE) has advanced from $0.05 above $0.44 since the beginning of April, and the current price stands around $0.27. The current trend of this cryptocurrency remains bullish, but when trading Dogecoin, you should have in mind that the price could also weaken even more in the upcoming days.
Fundamental analysis: The liquidity has risen dramatically this April
Dogecoin (DOGE) price has exploded since the beginning of April, and this coin continues to trade in a buy zone. There is no risk of the trend reversal for now, but if the price falls again below $0.20, it would be a firm “sell” signal, and the next target could be around $0.15.
Dogecoin is a derivative of Luckycoin that Jackson Palmer and Billy Markus created. Dogecoin has one-minute block intervals making it faster than other blockchains, while its large supply and low price facilitated efficient micro-tipping content on social media.
Dogecoin has started to attract interest from traders after Elon Musk said that the only thing hindering this coin from becoming the “official currency of the internet” is its high concentration level among a few rich people.
Elon Musk also said that he bought Dogecoin for his son and invited major holders to sell a substantial amount of their DOGE stash in exchange for his full support. A small group of people owns more than 50% of the entire Dogecoin supply, and this is one of the major reasons why this cryptocurrency can not achieve mainstream adoption.
“If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue,” Elon Musk said.
The liquidity of this cryptocurrency has risen dramatically this month, and despite the current correction, Dogecoin continues to attract attention from traders.
Technical analysis: Dogecoin extended its correction from the record highs above $0.44
The cryptocurrency market remains under pressure, the price of Dogecoin can weaken even more in the upcoming days, and maybe it is not the best moment for investing in this cryptocurrency.
Data source: tradingview.com
The critical support levels are $0.20 and $0.15, $0.35, $0.40, and $0.45, represent the current resistance levels. If the price jumps above $0.35 in May, it would be a signal to trade Dogecoin (DOGE), and the first target could be around $0.40.
Rising above $0.40 supports the continuation of the bullish trend, and we have the open way to $0.45 resistance level. On the other side, if the price falls again below $0.20, it would be a strong “sell” signal, and we have the open way to $0.15.
Dogecoin (DOGE) price has exploded since the beginning of April, and despite the current correction, Dogecoin continues to attract attention from traders. There is no risk of the trend reversal for now, but if the price falls again below $0.20, it would be a firm “sell” signal, and the next target could be around $0.15.