Elon Musk’s acquisition of Twitter has also mobilized the crypto money markets. The fact that Tesla is a big Bitcoin investor and Elon Musk is a big Dogecoin fan caused every positive news from that side to be priced in.
Finally, in the rise experienced yesterday, Dogecoin passed an important resistance zone.
The falling trend, which came from May 7, 2021 and had 3 contacts, was broken with yesterday’s rise.
When we look from a little distance, we see that a descending wedge formation is formed in the Doge and this is broken upwards.
If there is no sharp decline in Bitcoin, we can expect Doge to continue its rise from here.
Our broken trendline will be our new support and is currently crossing at $0.1528. Those who want to make a new entry can evaluate it, with a stop at the 4-hour close below this level (there is a 5% risk of loss).
The next most critical resistance is the $0.1653 level. Seeing a one-day close above this level will enable us to rise up to 0.1966 in the short term.
Those who enter at these prices can carry their positions with a trailing stop as long as the $0.1528 level is maintained.
*Not Investment Advice.