Technical Analysis

DOGE/USD Analysis – May 18, 2021

By LonghornFX Technical Analysis
May 18, 20213 min

Symmetrical Triangle Pattern!

The DOGE/USD was closed at $0.487220 after placing a high of $0.513340 and a low of $0.475650. DOGE coin dropped on Monday and posted losses for the day mainly due to the latest comments from Elon Musk. The CEO of Tesla and SpaceX said that he might develop his crypto if Dogecoin, the crypto that launched as a joke, cannot do what he wants. Elon Musk has been blamed for many movements in the cryptocurrency market after his company decided to acquire $1.5 billion worth of bitcoin earlier this year.

Recently, the billionaire, who calls himself the doge father for supporting DOGE, has called out bitcoin to contribute to the growing use of fossil fuel and the consequences that affect the environment. In his latest tweet, Musk said that cryptocurrency was a good idea on many levels, and he believed that it has a promising future, but he strongly disagreed that this could not come at a great cost to the environment. After his tweet, bitcoin prices a steep decline and weighed on the whole cryptocurrency market due to its impact on the market. Dogecoin also followed the trend and declined on Monday.

Meanwhile, when Musk was asked if he would start his cryptocurrency to do all that he wants. He responded in favor of Dogecoin. He answered that only if Dogecoin cannot do it would he go for making his cryptocurrency. Tesla has repeatedly said that Musk wants a coin with significant low transaction fees and excellent energy efficiency.

With his favorable tweet for Dogecoin, Musk doubled down on his bet that Dogecoin can become a currency that addresses Tesla’s new set of environmental requirements. Musk said that he was working with Dogecoin developers to improve the currency and hoped that it could evolve to be more energy-efficient in the future.

On the other hand, the co-founder of Dogecoin, Billy Markus, said that he had made the Dogecoin in just two hours, and he did not think of its environmental impact. These comments from the co-founder of Dogecoin added weight to its value as Musk has decided not to take payments in Bitcoin due to its impact on the environment. If the same will happen with Dogecoin, then it could cause a decline in dogecoin value.

DOGE/USD Intraday Technical Levels

Support Resistance

0.477756 0.544416

0.441283 0.574603

0.411096 0.611076

Pivot Point: 0.507943

DOGE/USD - Technical Outlook

The DOGE/USD pair is trading sideways at 0.4922 level. On the 4 hour chart, the pair has formed a symmetrical triangle pattern that demonstrates indecision among traders. It looks like the investors are waiting for some solid news 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 0.4660, and below this, the next support stays at 0.3735. Conversely, the resistance holds at 0.5273 and 0.5925. All the best!


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