In the dynamic world of cryptocurrency, Dogecoin (DOGE) experienced a notable upswing, boasting a 9.34% gain within 24 hours. Adding to the excitement, traders observed Dogecoin achieving its inaugural Moving Average Convergence Divergence (MACD) golden cross on January 20, a significant technical development indicating a potential sustained upward trend.
In a recent X post, Trader Tardigrade uncovered this noteworthy occurrence by scrutinizing the DOGE weekly chart, shedding light on the promising outlook for the meme-inspired digital currency.
The surge in DOGE value was not an arbitrary event but rather was ignited by the launch of X Payments, the financial arm of the X platform. Notably, the driving force behind X is Elon Musk, a vocal supporter of DOGE, who has previously hinted at incorporating the meme cryptocurrency as a payment option for the all-encompassing “Everything app.”
Dogecoin’s Rollercoaster Ride
Elon Musk’s affinity for Dogecoin has been evident, with reports from Fortune in January 2023 indicating the company’s contemplation of integrating crypto payments into the platform. While Musk remains mum on the confirmation of these plans, the Dogecoin community is optimistic, especially given that Tesla, another Musk-led enterprise, already accepts DOGE as a valid form of payment.
The surge in DOGE’s price triggered a spike in trading volume, propelling the value to a peak of $0.090. However, encountering resistance at this level, the price retraced to $0.085 at the time of reporting. The pullback may be attributed to overbuying, as reflected in the Relative Strength Index (RSI), which reached a high of 76.72 before settling at 64.11. This suggests that a quick sell-off contributed to the temporary decline.
Analyzing the Fibonacci retracement levels, the 0.618 Fib level at $0.082 emerges as a potential support level for Dogecoin. Despite the retracement, indicators from the MACD golden cross and heightened buying pressure hint at a potential surge, with DOGE possibly reaching as high as $0.11.
Source: TradingView
The $0.11 mark coincides with the 3.618 Fibonacci level, showcasing the cryptocurrency’s potential for further gains. However, Dogecoin’s future value trajectory hinges on updates from X Payments and Elon Musk.
If the platform embraces Dogecoin for payments, enthusiasts foresee a potential route toward the much-debated $1 price target. Conversely, if Musk decides against DOGE integration, achieving the $1 milestone could encounter greater challenges. The crypto community eagerly awaits further developments in this compelling storyline.