Famous Analyst Points To This Support Point On The Dogecoin (DOGE) Chart: “May Have Long-Term Effects!”

last week Dogecoin (DOGE) The rise in the price stemming from Twitter, this cryptocurrency The currency moved well above its technically important 200-day moving average.

DOGE, which traded under 6 cents a week ago, had risen to over 15 cents on Tuesday thanks to the world’s richest man Elon Musk closing his Twitter purchase and hoping for some kind of integration with the popular social media platform.

According to data provided by charting platform TradingView, the ratio between the market price of DOGE and the 200-day simple moving average (SMA), also known as the Mayer Multiple, reached 1.83, the highest level since June 2021.

Analyst Katie Stockton Points To The $0.0917 Level For Dogecoin In A Note To Her Clients

Unsurprisingly, Dogecoin’s Mayer Multiple is the highest among the top 20 cryptocurrencies by market cap.

Katie Stockton, founder and managing partner of Fairlead Strategies, said in a note to clients:

“Dogecoin rallied over 100% last week on speculations of integration with Twitter.

The uptrend makes sense on its chart based on the break above the 200-day MA and old tops.”

DOGE’s 200-day moving average shows the Ichimoku cloud and its August 16 high of $0.0917 turning resistance into support. Crossings above or below the cloud are considered early signs of a bullish or bearish trend change.

According to Stockton, the long-term positive effects of DOGE could be strengthened if the bulls manage to form a new bottom above the old resistance-support level of $0.0917.

But chasing the rally right now could be risky, due to the possibility of a “sell the news” event, according to Stockton. Musk completed the acquisition of Twitter for $44 billion late last week. Therefore, investors who bought DOGE prior to this event can make a profit and push prices back.

*Not investment advice.