Dogecoin (DOGE) has been making waves today as a result of a series of bullish developments brought by none other than Elon Musk, the self-proclaimed “Dogefather”. Musk’s influence on the DOGE market is undeniable, and his recent actions have led to a renewed interest in this meme-inspired digital currency. Due to a surge in demand, the price of Dogecoin has recently crossed a key resistance level; however, it is currently struggling to maintain its uptrend. This has led to mixed sentiment in the market, with investors eagerly awaiting the next move.
X.ai and Dogecoin’s relationship
Elon Musk, the owner of Twitter, is currently transforming it into “X”, a brand within his conglomerate of companies, X.AI, which focuses primarily on artificial intelligence. This Monday, Musk added the Dogecoin ticker logo to his biography, sparking market hype about Dogecoin’s potential role in the rebranded entity.
Investor sentiment was already on an upward trend as Tesla, Musk’s electric vehicle company, recently removed the source code that enabled Bitcoin transactions. However, under Musk’s leadership, Tesla continues to accept Dogecoin as a form of payment. This decision has sparked a wave of purchases among investors, propelling Dogecoin’s market trajectory upwards.
Despite positive trends, Dogecoin was unable to sustain its bullish rally due to a surge in total liquidation, leading to selling pressure at higher levels. Coinglass reports a significant increase in liquidation in recent days after the price crossed $0.065.
While the DOGE price peaked at $0.078 today, both long and short liquidations accelerated. The total liquidation at this level exceeded $6 million, which put downward pressure on the memecoin.
What’s Next for the DOGE Prize?
For the past few days, the bulls have successfully defended the 20-day EMA at $0.07 before starting a bullish trend, indicating that the memecoin is attracting buyers even at lower levels. This defense led to a positive sign for the coin’s market trend.
Recently, Doge price broke above the critical $0.075 resistance level and continued to climb towards $0.078, only to be rejected. The 20-day EMA is trending up, and with the Relative Strength Index (RSI) above 60, it suggests that the path of least resistance for Dogecoin is up.
If buyers can hold the price above $0.075, it could be the start of a new uptrend. In this scenario, the DOGE price could potentially rise to $0.081, and if momentum continues, it could even reach $0.095.
However, this positive view can become invalid. If bears manage to pull the price below the moving averages quickly, it could suggest that the recent rally above $0.07 was a bull trap. This could potentially lead DOGE price to drop to $0.067 and then to the low of $0.06.