Dogecoin price today had its Thank-God-Its-Friday moment after rising by more than 30 percent against the US Dollar.
DOGE/USD began the day by continuing to its bull run. The pair on Thursday had jumped sharply from 0.00246-fiat to 0.00324-fiat, i.e. 31 percent amidst a strong buying spree. As the Asian trading session began today, the price was hovering inside 0.00328-0.00385 area, forming higher highs and higher lows. The uptrend matured as the European session came into play, adding another 30 percent gains to the market. At the time of this writing, the DOGE/USD is retesting its mid-July peak. at 0.00420-fiat.
The reason behind the impressive 60 percent surge in just two days is speculated to be Dogecoin’s integration into the Ethereum project, the world’s second largest cryptocurrency project by market capitalization. The meme cryptocurrency, which was launched a joke, is attempting to keep up with cryptocurrency universe by launching Dogethereum – an amalgamation of Dogecoin and Ethereum. The project will enable the transfer of tokens between the two blockchains. Also, Dogecoin will benefit from gaining flexibility with Ethereum’s smart contracts.
The unannounced DOGE/USD rally has changed the technical dynamics of Dogecoin market. The pair until yesterday was limited by a falling wedge pattern on the daily charts as the rest of the market. However, the upside break has invalidated the channel resistance already. With it, the break has brought the pair above its 100H and 200H moving averages, further improving the RSI and Stochastic indicators which are now inside their respective overbought areas.
The medium-term bias on daily charts has switched to bullish. If DOGE/USD manages to break above the mid-July’s peak, it would invoke another breakout attempt towards 0.00476-fiat, May’s upside reversal level. Nevertheless, 0.00420 will be a strong level to break. Coinciding with the need for a bearish correction, before DOGE/USD could attempt to form another upside pole, the pair could attempt a reversal any point now.
Should it happen, DOGE/USD will find to locate a support level in 0.00376-0.00382 area. If this area is broken to the downside, the pair could treat 0.00310-fiat as the next downside target.
Such shooting star rallies appear as quickly as they disappear. The buying sentiment we are looking at has strong fundamentals behind it, but how far can it sustain is a matter of wait-and-watch approach.
Featured image from Shutterstock. Charts from TradingView.