Following a stratospheric rise in the price of DOGE, it is now down 60% from its all-time high reached less than a month ago. However, still the Dogecoin cryptocurrency does not seem dead, which makes us think that Elon Musk is the one who keeps the meme cryptocurrency alive.
And it is that after having launched negative comments towards the Bitcoin technology, and unleashing a bearish tide in the market, the self-appointed technoking continues to support DOGE, maintaining the humorous way of advertising, but taking the issue more and more seriously.
On May 13, Musk said he was working closely with Dogecoin developers to improve the efficiency of the transaction system.
Working with Doge devs to improve system transaction efficiency. Potentially promising.
– Elon Musk (@elonmusk) May 13, 2021
He later returned to say that they were receiving suggestions to develop the cryptocurrency meme.
Of course, not everyone is taking all this in a good way, because we are talking about a coin that was born completely from the joke, and so far almost nothing has changed.
It appears that Musk’s intention is real, and the community behind the dog-faced cryptocurrency is excited, keeping their coins in hold. Despite the big price drop, the end of the bull market does not look like the end of the market yet, as we will see below.
DOGE price technical analysis
The behavior observed from the daily chart indicates that the fall may still be a correction before continuing to rise.
The strength of the price crash is still small compared to that of the previous rally, indicating that the bullish force is still dominant, and could put pressure on the support zone being visited.
A descending line marks a break and a reversal of the trend. Still the scale is a bit tilted towards the scenario where the bulls escape over the top, resuming the trend.
However, as long as we do not see a breakout of that downline, it is more likely that the immediate support zone will continue to be tested first. Breaking it, if that would be an important bearish signal.
Dogecoin price daily chart. Source: TradingView.
Dogecoin’s dominant bullish force is kept alive thanks to Elon Musk
Dogecoin holders remain hopeful that Elon Musk will continue to push the price higher. This is demonstrated in the behavior observed from the weekly chart, where no support has been broken yet.
The upward trend in the medium term remains in force. For this to change, the support at $ 0.25 must be broken through strongly.
As long as that is not the case, the drop we saw may be the necessary pullback before a push for new all-time highs.
Even though the overall market crash caused losses of up to 70.91% in the price of Dogecoin, still the gains that Elon Musk has driven since the beginning of the year tell us that bulls are the dominant force, and could quickly surprise us.
It is more than clear that we are already in maximum bubble territory in the DOGE market; however, as long as we don’t see a determining bearish force, more gains could follow.
DOGE vs. USD monthly chart. Source: TradingView.
All our publications are informative, so in no case should they be followed as investment advice.