Dogecoin (DOGE) has been making waves today due to a series of bullish developments brought by none other than Elon Musk, the self-proclaimed “Dogefather.” Musk’s influence over the DOGE market is undeniable, and his recent actions have sparked a renewed interest in this meme-inspired digital currency. Due to a bullish surge in demand, Dogecoin’s price recently cleared a key resistance level; however, it is currently struggling to hold its uptrend. This has led to a mixed sentiment in the market, with investors keenly watching for 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 primarily focuses on artificial intelligence. This Monday, Musk added the Dogecoin ticker logo to his bio, creating market hype about Dogecoin’s potential role in the rebranded entity.
Investor sentiment was already trending upward as Tesla, Musk’s electric vehicle company, recently removed the source code that allowed for Bitcoin transactions. However, under Musk’s leadership, Tesla continues to accept Dogecoin as a form of payment. This decision has spurred a wave of purchases among investors, sending Dogecoin’s market trajectory upwards.
Despite positive trends, Dogecoin couldn’t 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 over recent days after the price exceeded $0.065.
As the DOGE price peaked at $0.078 today, both long and short liquidations accelerated. The total liquidation at this level exceeded $6 million, exerting downward pressure on the memecoin.
What’s Next For The DOGE Price?
Over the past few days, the bulls have successfully defended the 20-day EMA at $0.07 for triggering a bullish trend, indicating that the memecoin is drawing buyers even at lower levels. This defense led to a positive sign for the coin’s market trend.
Recently, the Doge price broke above the critical $0.075 resistance level and continued to surge toward $0.078 but only to face rejection. The 20-day EMA is trending upward, and with the Relative Strength Index (RSI) above 60, it suggests that the path of least resistance for Dogecoin is upwards.
If buyers can keep the price above the $0.075 mark, it could signal the beginning of another upward trend. 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 outlook may become invalid. If bears manage to quickly pull the price below the moving averages, it could suggest that the recent rally above $0.07 was a bull trap. This could potentially lead to a drop in the DOGE price to $0.067 and then to the bottom level of $0.06.
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