Over the weekend, Dogecoin (DOGE) surged 11% following the overall market performance. The price surge saw the dog-themed token retest key resistance levels, fueling a bullish forecast from crypto analysts. Investors also shared a positive sentiment following Elon Musk’s recent comments on cryptocurrencies and the largest memecoin by market cap.
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Dogecoin attempts to break through key level
Over the past week, market watchers have revealed their bullish predictions for the largest memecoin by market cap. Daan Crypto Trades revealed that DOGE was “showing some strength” after trading above the 200 daily MA/EMA last week and testing a multi-month diagonal trendline.
DOGE attempted to break out of the downtrend line again after trading above the $0.134 resistance level in the early hours of Monday. For Daan, the price of Dogecoin could “go higher in the coming weeks” if it holds the $0.13 area.
Similarly, analyst Crypto Poseidon pointed out that “DOGE’s daily ema50-200 has started to squeeze again.” According to the analyst, this lead for an expansion above the previous yearly high of $0.22. Poseidon added: “$0.3 on the horizon, dog lovers.”
Amid the market recovery, renowned crypto analyst Ali Martinez revealed on Thursday that Dogecoin was playing the same pattern it displayed before. Following this pattern, DOGE is consolidating in a descending triangle.
During consolidation, the memecoin historically sees a 140%-230% rally before pulling back around 60%. According to the analyst, DOGE investors should “just wait” as the memecoin enters the bull run after the pullback.
At the time of writing, Dogecoin is hovering between the $0.129 and $0.130 price range, down 0.5% over the past 24 hours. However, this performance represents a 7.6% and 5.3% price increase over the bi-weekly and monthly timeframes.
Elon Musk Won’t Promote Crypto, But Has a ‘Soft Spot’ for DOGE
On Sunday, Tesla CEO Elon Musk joined The X Takeover event hosted by the Tesla Owners Club Silicon Valley. Musk made a special virtual appearance to discuss his insights on technology, space exploration, sustainability and cryptocurrencies.
During his appearance, the CEO clarified that he would not promote crypto, but could address them jokingly in the future. He also stated that he does not have a negative opinion about cryptocurrencies, despite refusing to endorse them.
Musk explained that certain crypto assets, including Bitcoin (BTC), have merit in his eyes, but investors won’t see him pumping them. However, the billionaire added that he liked Dogecoin due to his fondness for dogs and memes.
I’m not going to promote cryptocurrencies — at most, in a joking way. If you see me pumping crypto, that’s not me. I genuinely think there’s merit in Bitcoin and maybe some other cryptocurrencies, and I kind of have a soft spot for Dogecoin because I like dogs and memes.
The DOGE community had a mixed reaction to Musk’s comments. Some investors considered the comments to be bad news for Dogecoin and its holders, as it meant that it would no longer be supported the adoption of the memecoin. “I guess putting Doge on the moon is no longer a real thing he’s considering,” one replied. to read.
Others believe that clarifying his crypto stance was necessary as some “would think he said he is against crypto, which is not true.” Additionally, many investors felt that his fondness for DOGE was optimistic for the memecoin.
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Following the news, the largest cryptocurrency by market cap saw an 8% price increase, rising from the $0.1204 range to $0.1355 overnight.
Featured image from Unsplash.com, chart from TradingView.com