The largest meme coin by market value dogecoin (DOGE) recently found support from the strong support point at $0.1225 and the 200-day trend EMA. This rise has seen the coin increase its value by 39% in the last four days, currently trading at $0.167. Additionally, the recovery in the meme coin sector gained significant momentum as Bitcoin surged above $62,000, encouraging Dogecoin buyers to break the current correction trend to trigger the rally above $0.2.
Tesla Increases Dogecoin Volatility with New Payment Acceptance
As Koinfinans.com reported, the short-term trend in the DOGE price is bearish and a downward sloping resistance trend line can be observed on the daily chart. Dynamic resistance dropped the DOGE price from $0.228 to $0.12, leading to a 47.5% loss.
However, in the broader market BitcoinWith the recovery of ‘s price from $ 56,500, we witnessed increasing buying pressure again. This supported the altcoin to form a local bottom. As a result, DOGE price bounced back with three consecutive green candles and regained the 100-day EMA slopes, reaching the $0.167 level.
Dogecoin price is up 15% today, likely driven by Tesla accepting the meme cryptocurrency as a payment method for certain products.
If the buying momentum continues, DOGE price may break above the overall trend line, an early sign to reflect the end of the correction. A post-breakout rally could push the asset price back to $0.2 in the potential 1-2 weeks after the breakout, followed by a rally to $0.228.
Dogecoin Activity Skyrockets with 102% Increase in New Addresses
Data from cryptocurrency analysis firm IntoTheBlock according to Dogecoin is experiencing a significant increase in activity. This week, the number of new Dogecoin addresses increased sharply. Notably, over 28,000 new addresses were created on Thursday, marking a 102% increase over the monthly low observed on Monday.
Dogecoin activity is spiking!
The number of new Dogecoin addresses has increased sharply this week.
Over 28k new addresses were created yesterday, a 102% increase from the monthly low set on Monday pic.twitter.com/SlMLxvwWAo
— IntoTheBlock (@intotheblock) May 3, 2024
This increase in new addresses indicates increased interest and commitment to Dogecoin, potentially indicating a bullish sentiment among investors.
Technical Indicator
Exponential Moving Average: With the recent rally, DOGE price has regained the daily EMAs (20, 50, and 100), providing additional support to buyers to extend the recovery trend.
Moving Average Convergence Divergence: The bullish crossover between the MACD (blue) and the tick (orange) line highlights the recovery sentiment returning to Dogecoin.
