DOGE price surge imminent? – analysis by Analytics Insight
Recently, over several weeks, DOGE has been bearish. Today, May 13th, DOGE currently trades at $0.1446, a 2.95% gain in the last 24 hours and a market cap of $20.9 billion. Impressively, DOGE's trading volume in the last 24 hours has also surged 50%, reaching $860 million.
The adoption of Dogecoin by Tesla, the renowned electric car company, has played a pivotal role in propelling the crypto into the mainstream. Elon Musk, the company's CEO and a vocal supporter of Dogecoin, announced that the company would allow consumers to pay for its merchandise using the meme-inspired crypto.
The recent surge in Dogecoin's price has been fueled by the entry of whales and institutional investors into the market. In a striking example, a large trader removed a staggering $19 million worth of DOGE from the Robinhood trading platform, signaling a potential bullish trajectory for the cryptocurrency.
From a technical perspective, Dogecoin's recent price movements have painted an optimistic picture for the future. After finding support around the $0.12 level, DOGE has shown resilience in the face of bearish pressures, indicating a potential reversal in the market sentiment.
A bullish flag pattern on the daily chart broke down past its support to test heavier support at the $0.12500 zone down and created resistance at $0.16918. A breakout above the $0.16918 resistance level, combined with a close above it, could propel DOGE towards testing the recent high of $0.22888. However, if the bullish momentum doesn't build, the price may retrace to the $0.12500 level, providing an attractive entry point for investors.
Indicators such as the narrowing Bollinger Bands suggest a period of decreased volatility, while the Relative Strength Index (RSI) at 45 points shows the recent bearish activity and momentum.
