Dogecoin Worth Ranges to Watch After Put up-Election Rally

Dogecoin (DOGEUSD) has been one of many greatest gainers following the election of Donald Trump final week, and the cryptocurrency meme coin obtained one other enhance this week when the president-elect introduced the creation of a brand new company that carries the acronym DOGE.

The division, which can be co-led by distinguished Trump backer and crypto fanatic Elon Musk, goals to scale back authorities expenditure and reduce extreme purple tape. All through Wednesday, Musk posted a number of references to the DOGE division on his social media platform X, which included the meme coin’s symbolic Shiba Inu canine.

Since election day, Dogecoin has surged greater than twofold to a three-year excessive, with the value at the moment sitting just under this week’s peak as retail merchants flood again into cryptocurrencies amid expectations of a crypto-friendly incoming administration. Dogecoin was unchanged Thursday afternoon at $0.39.

Let’s take a better have a look at Dogecoin’s weekly chart and establish key worth ranges that buyers could also be watching.

Cup and Deal with Breakout

Dogecoin fashioned a traditional cup and deal with between November 2021 and October this 12 months earlier than the value made a decisive breakout above the sample’s higher trendline following final week’s election consequence.

Importantly, the transfer occurred on the best weekly buying and selling quantity since early March, setting the stage for additional speculative shopping for.

Whereas the relative power index (RSI) confirms bullish worth momentum with a studying above 80, the indicator additionally flashes extraordinarily overbought circumstances, which might result in sudden reversals.

Let’s use technical evaluation to forecast a possible upside worth goal to observe, whereas additionally figuring out key assist areas to observe.

Measuring Precept Worth Goal to Monitor

Traders can forecast a possible upside worth goal by utilizing the measuring precept, a way that makes use of prior worth motion to foretell future strikes. When making use of the device, we’ll measure the share transfer, given Dogecoin’s important worth fluctuations.

To do that, we calculate the share change of the cup and deal with’s “cup” and add it to the sample’s high trendline worth. For instance, we apply a 530% enhance to $0.22, which tasks a goal of $1.385. 

It’s value retaining in thoughts that Dogecoin’s market capitalization would want to extend to round $203 billion from its present market cap of about $58 billion to succeed in this bullish worth goal.

Key Assist Areas to Watch

The primary assist space to observe sits round $0.35, a location on the chart the place the meme coin’s worth might appeal to assist close to mid-August 2021 countertrend peak.

A failure to carry this stage might see the cryptocurrency fall to the $0.285 stage. Traders might search for entry factors on this space close to a collection of comparable costs positioned just under the October 2021 swing excessive.

Lastly, a deeper correction might result in a retest of the $0.22 stage, a area the place merchants preferring to not chase breakouts might search for shopping for alternatives close to the cup and deal with sample’s higher trendline.

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As of the date this text was written, the writer doesn’t personal any of the above securities.