Will the DOGE Relief Rally Hold?
The Dogecoin price is little changed today as traders reflect on the activities of the past weekend. The DOGE is trading at $0.5316, which is about 27% below its all-time high of $0.7335. Its market cap is at more than $68 billion, which is lower than the all-time high of more than $80 billion.
What happened: Dogecoin was closely watched during the weekend as enthusiasts waited for Elon Musk to appear on the Saturday Night Live (SNL). This enthusiasm helped push the price to an all-time high. It also brought the year-to-date gains to more than 16,000%, making it the best performing cryptocurrency in the world.
However, the price then retreated by as much as 50%. This was mostly because of the buy the rumour, sell the news situation. Indeed, this was the same reason why the BTC price crashed after the CoinBase Global listing. The price also dropped after the second-richest man in the world called Dogecoin a hustle. He said:
“It’s the future of currency. It’s an unstoppable financial vehicle that’s going to take over the world. Yeah, it’s a hustle.”
Therefore, the price is consolidating today as traders digest the next moves for the digital currency. Some analysts believe that selling the news will push it lower than yesterday’s low of $0.4127. Others believe that the Dogecoin community will push it substantially higher as they attempt to push it to $1.
Dogecoin price prediction
On the four-hour chart, we see that DOGE surged to an all-time high and then crashed to $0.4127. The currency has also managed to move below the 25-day and 15-day exponential moving averages. It is also having a relief rally, which typically happens after a major dip. The pair is also slightly above the ascending trendline that is shown in black.
Therefore, at this point, the outlook for Doge is neutral since it can go in either direction. There is a possibility that the currency will surge to the upper side of the ascending channel that is shown in black. The other alternative is where the price resumes the downward trend. For this to happen, bears will need to move below the lower line of the ascending channel.
DOGE price chart
Follow Crispus on Twitter.