Technical Analysis

DOGE/USD Analysis – June 01, 2021

By LonghornFX Technical Analysis
Jun 1, 20213 min
DOGE-USD.jpg

Symmetrical Triangle Pattern! 

The DOGE/USD was closed at $0.325500 after placing a high of $0.325500 and a low of $0.296110. After declining and posting minor losses for four consecutive sessions, DOGE/USD reversed its course on Monday and turned green amid the improved market sentiment.

Barry Silbert, the CEO of the Digital Currency Group, has revealed that he believes the meme-inspired cryptocurrency Dogecoin was not worth $37 billion. The firm's CEO behind crypto industry giants like Grayscale Investments and CoinDesk noted that the DOGE was a cryptocurrency that will certainly not go away because of its passionate community.

The meme-based cryptocurrency surged this year after Tesla CEO and various celebrities supported it on social media. Silbert argued that DOGE getting closer to $1 was a clear sign of being in a bubble, even though he said he was genuinely excited to see what DOGE could become over time.

The Digital Currency Group CEO also forecasted a significant crash to the price of Dogecoin and said that the market capitalisation of the cryptocurrency would ultimately go back to under $1 billion. This means the price of the meme-based cryptocurrency will drop from its current $0.30 to $0.01.He further called DOGE the ultimate momentum gamble trade. Despite his negative comments, DOGE continued its bullish momentum on Monday and recovered a small portion of previous losses.

Meanwhile, the co-creator of the meme-inspired cryptocurrency DOGE, Billy Markus, argued that the price on one DOGE hitting a dollar would not be a success, as those who bought it at a place would like to see it hit $10 and so on. He added that success was not defined by Doge getting closer to a dollar, but the success was about people doing well in this community, growing, learning, being good.

On the other hand, the DOGE/USD also saw some recovery on Monday amid the declining prices of the greenback. The greenback remained on the back foot as DXY posted a second significant monthly decline and reached near 89.82 that added heavy pressure on the greenback. The U.S. Treasury yields on10-year note also fell and added extra pressure on the U.S. dollar that pushed DOGE/USD higher on board as both are negatively correlated.

DOGE/USD Intraday Technical Levels

Support Resistance

0.291494 0.309934

0.281137 0.318017

0.273054 0.328374

Pivot Point: 0.299577

DOGE/USD - Technical Outlook 

The DOGE/USD pair's technical side hasn't changed much, as is trading sideways at the 0.3218 level. On the 4 hour chart, the pair has formed a symmetrical triangle pattern that demonstrates indecision among traders. It looks like the traders are still waiting for a solid reason to trigger a breakout in Doge. Typically, the symmetrical triangle breakout on either side, depending upon the news release; therefore, the traders will be keeping a closer eye on the pair to capture any significant price action. The DOGE/USD has immediate support at 0.3096, and below this, the next support stays at 0.2837 and 0.2477. Conversely, the resistance holds at 0.3459. All the best!

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