Technical Analysis

DOGE/USD Analysis – May 31, 2021

By LonghornFX Technical Analysis
May 31, 20212 min

Symmetrical Triangle Pattern!

The DOGE/USD was closed at $0.301850 after placing a high of $0.307660 and a low of $0.289220. DOGE/USD continued its bearish momentum and declined for the 4th consecutive session on Sunday. The losses in Dogecoin were limited throughout the week as the cryptocurrency was continuously getting support from the influencer CEO of Tesla, Elon Musk. On the other hand, the famed investor Stanley Druckenmiller shared his thoughts on Dogecoin as the meme cryptocurrency has recently taken the market by storm. He said that he would not short Dogecoin as he pretends that DOGE doesn’t exist.

He added that he thinks so little of DOGE, and it doesn’t even bother him when it goes up. He said that when the bitcoin used to go up, he would go crazy because he did not own it. Whereas, when Dogecoin goes up, he starts laughing. These comments from a famous investor added pressure on DOGE/USD prices over the weekend.

Moreover, a significant restaurant and convenience store chain in the United States named Sheetz has announced that it will start accepting Dogecoin and select other cryptocurrencies as payment methods via a partnership with crypto payment processor Flexa. This announcement added convenience stores to a growing list of businesses accepting cryptocurrency payments throughout the world. This added further strength in the DOGE/USD and capped additional losses.

Furthermore, the U.S. dollar was also strong on Friday as the U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose to 90.44 level and added weight on the DOGE/USD prices.

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 is trading sideways at the 0.3028 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 0.2837, and below this, the next support stays at 0.2477 and 0.2268. Conversely, the resistance holds at 0.3096 and 0.3459. All the best!


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