DOGE/BTC is stuck between two confluence levels as the cryptocurrency market generally moves sideways.
Bitcoin could re-cross the $70,000 mark this weekend, but a correction to $65,000 is still possible.
As the value of DOGE/BTC continues to rise, the likelihood of Dogecoin hitting a new all-time high also increases significantly.
Investors have recently turned their attention to tokens in the meme coin space. The factors driving this move depend on the ability of digital assets to achieve 10x to 100x returns in a short period of time. According to CoinGecko data, the price of Dogecoin, the king of the space, hovered at $0.16 during U.S. business hours on Friday, about 185 times its all-time low of $0.0000869.
On the other hand, Bitcoin is struggling to shape its bullish outlook. Last week, the price of Bitcoin rose to $72,000 driven by the hype of the approval of the Ethereum ETF.
However, a pullback ensued due to increased volatility and lack of investor confidence in the uptrend. Bitcoin price is currently trading at $68,723, maintaining a 0.8% gain over the 24-hour period.
Dogecoin Price Establishes Support Ahead of Breakout
The DOGE/BTC pair is trading at 0.00000235, having corrected slightly from 0.0000255. Its immediate support is the confluence of the purple 200-day exponential moving average (EMA) and the rising trendline.
On the upside, the DOGE/BTC pair is capped by another confluence resistance consisting of the 20-day EMA in blue and the 50-day EMA in red. Until the pair breaks out of either side of this tiny range, sideways trading will continue.
In the short term, the correction may be gaining momentum, with the Relative Strength Index (RSI) trading just below the neutral zone at the midline and forming a bearish divergence with the price.
Traders watching for large price swings in Dogecoin can watch for a bounce off the trendline and the 200-day EMA. As Dogecoin strengthens against BTC, its USD value will surge to an all-time high of $0.7316.
The key hurdles that could create difficulties for traders are 0.000026 and 0.00003.
Could Bitcoin Price Rise Ahead of US Inflation Data?
Investors tired of Bitcoin's sideways movement this week are rushing to buy new tokens for quick profits, including popular games on Telegram, Notcoin (NOT) and GameStop (GSTOP).
However, the cryptocurrency market could see volatility as the U.S. releases personal consumption expenditures (PCE) inflation data, which will hint at the Federal Reserve’s expected interest rate changes.
The Federal Reserve kept interest rates unchanged at its last FOMC meeting, and according to the Consumer Price Index (CPI) released in early May, inflation eased in April.
Market watchers expect the Fed to cut rates for the first time in June, but that remains uncertain. Economists expect the Fed to cut rates for the first time in September. The Fed still has a long way to go to get U.S. inflation down to its 2% target.
It is too early to tell whether Bitcoin prices can break out of their slump and break through $70,000. Such a development could trigger FOMO among investors, encouraging people to bet that Bitcoin will rise to $80,000.
Bitcoin has bounced off the $67,000 support level several times this week. If the pullback continues, this level will try to absorb the selling pressure. However, the selling may continue to $65,000 before the next breakout.
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