Everybody Loves… Dogecoin — Analysis, 10 May
Most of the major cryptocurrencies hit new all-time highs this past week. Ethereum (ETH) managed to surpass the psychological level of $4,000 during the week, recording a new-all time high. Binance Coin (BNB) hit $680 — the highest level since inception.
However, the biggest surprise for the crypto market or, actually, for some cryptocurrency users was the phenomenal price increase of Dogecoin, the meme-based virtual currency. DOGE soared to almost 0.75$, recording an approximately 90% price increase throughout the past week. Because of this, DOGE became the 4th biggest cryptocurrency by market cap and remained in this position for a couple of days. It was even about to flippen (displace) Binance Coin (BNB) from the 3rd place:
On Friday, April 7th, Mike Novogratz, well-known crypto bull and founder of cryptocurrency investment firm Galaxy Digital, was asked to explain what he thinks about the Dogecoin massive rally and what this means for the market during the ‘Ethereal Virtual Summit 2021’. The crypto bull said: ‘Dogecoin rally is a little bit of a middle finger to the financial system.‘
However, not all cryptocurrency enthusiasts are happy with and support the meme-coin success. Barry Silbert, the founder and CEO of the biggest cryptocurrency fund Grayscale, announced on Saturday, May 8th, that he had open a short position against DOGE and underlined that it is time to put an end to the DOGE party:
This news surprised the DOGE fans, and the price of the meme-coin started to decline. Nevertheless, the DOGE fans decided not to give up. The Chairman, one of the most famous DOGE fans army leaders, hinted that the DOGE community won’t give up and will fire back:
The biggest surprise about the DOGE drama came on Sunday when SpaceX and Geometric Energy Corporation (GEC) announced ‘DOGE1 Mission to the Moon 2022’ — the first-ever lunar mission, that is going to be paid entirely with DOGE:
Moreover, Geometric Energy Corporation underlined that they decided to transact with DOGE for the lunar mission because “DOGE has proven to be a fast, reliable, and cryptographically secure digital currency that operates when traditional banks cannot and is sophisticated enough to finance a commercial Moon mission in full. It has been chosen as the unit of account for all lunar business between SpaceX and Geometric Energy Corporation and sets precedent for future missions to the Moon and Mars.“
The DOGE community received additional support from Elon Musk, the so-called Doge father, late on Sunday, when he confirmed the ‘DOGE1 Mission to the Moon 2022’ and dubbed DOGE the first cryptocurrency in space:
Now, already, one thing is clear: the meme-coin that used to be a joke (for many) is no more a joke. It is here to stay, and this story is going to continue to bring many other surprises. To be continued…
The Monday market starts on a positive footing. At the time of writing, according to Coin360.com, one Bitcoin costs €48,787.55 (+1.40%), one Ethereum — €3,404.20 (+4.05%) that is another new all-time high, one DOGE — €0.4574 (+4.92%), and one UNI- €33.64 (+3.06%):
Source: Coin360.com (Daily crypto market performance)
Now, let us look at the price charts of the leading cryptocurrencies against the euro in the noteworthy time frames.
In the daily chart (1D), BTC/EUR is consolidating at the 30-day Moving Average (MA 30) and the 90-day Moving Average (MA 90):
In our estimation, BTC/EUR will receive solid support from the MAs, and it will resume the upward movement within the Ascending channel.
As can be seen from the 1-hour chart (1H), BTC/EUR is already starting to move upward, forming another Ascending channel (uptrend):
This is a confirmation that, probably, the cryptocurrency is renewing the uptrend.
This past week, ETH/EUR recorded another solid bullish candlestick in the weekly time frame (1W) — a confirmation that the bulls continue to dominate the market:
In the four-hour chart (4H), the price of Ethereum broke through the upper line of the Ascending channel, thus accelerating the uptrend:
As can be seen from the chart, both the 30-day Moving Average and the 90-day Moving Average are heading upwards. This is another significant bullish signal. That is why we think that any pullback is a favorable opportunity to open a long position.
In the weekly chart (1W), Dogecoin marked another phenomenal week: DOGE/EUR formed another solid bullish candlestick:
The last weekly candlestick has a local high and a local low significantly above the previous ones. This is an indicator that the bullish trend remains in place. However, we would like to point out that the last bullish candlestick has a tall upper shadow: a signal that the volatility is increasing and the pressure from the bears is intensifying.
In the four-hour chart (4H), the price of Dogecoin experienced a deep pullback during the weekend. It has dropped from the upper line of the Ascending channel (uptrend) to the lower line of the channel:
Nevertheless, the bullish trend remains in place. First, the price of DOGE/EUR is still within the channel. Second, both the 30-day Moving Average and the 90-day Moving Average are heading upwards. These technical indicators confirm that the bullish trend continues. Therefore, it is highly probable that DOGE/EUR will resume the upward movement within the trajectory of the Ascending channel: Scenario 1 (S1) in the price chart.
However, we would also like to point out that the current price level is significantly above the 30-day MA and the 90-day MA. That is why DOGE/EUR may experience higher volatility. The price may drop below the lower line of the channel, hit the 30-day MA (currently at 0.2745 EUR), and then renew the uptrend: Scenario 2 (S2) in the price chart.
In the daily chart (1D), UNI/EUR continues the upward journey within the trajectory of the uptrend (Ascending channel):
As can be seen from the chart, right now, the price of the cryptocurrency is consolidating at the 30-day Moving Average (MA 30). The 90-day Moving Average (MA 90) is slowly but steadily moving upwards, slightly below the trend line. That’s why we think that if the price of UNI drops to the lower part of the channel and approach the trend line (the lower line of the channel), it will receive support from the MA 90 and will renew the upward journey.
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Originally published at https://bitvalex.com.
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