The price of DOGE must hold support at $0.29 to maintain the upside.
Dogecoin’s price history in 2021 shows that a further rise could materialize at any time. This is not something to be overlooked, especially if its biggest supporter Elon Musk is talking about DOGE, which has driven the corner higher in the past.
Yesterday, DOGE climbed 20% to trade at highs of $0.34 after the Tesla CEO referenced “Dogefather” in his tweet about an event he will attend on May 8.
Dogecoin (DOGE) is trading around $0.31 at the time of writing, up about 7% on the day, with bulls looking for further gains. Although the crypto-currency has lost some of the gains seen on April 28, the technical outlook suggests that further upside is likely if the rally bounces off support at $0.29.
Crypto-currency could also benefit from a broader rally in the altcoin market. Several coins are in the green, with Ethereum rising 4% to currently trade at $2,728, while Cardano has gained 8%, with buyers targeting a rise to $1.50.
Dogecoin Price Analysis
DOGE/USD is trading above a bullish trend line formed on the 4-hour chart, with support around $0.30.
The crypto-currency is experiencing some downward pressure, likely due to profit taking, but remains in a bullish zone. Selling could take prices toward trendline support, which also offers a horizontal support line at $0.29.
If the bulls bounce from the $0.29-$0.30 area, they are likely to breach the upper resistance at $0.34. The next target would be the supply wall near $0.40, above which the bulls could aim for a high of $0.43.
Conversely, if the decline continues to resist within further losses, primary support lies at the 50 SMA ($0.27) and 100 SMA ($0.26).
If the price of DOGE slips below the moving averages, it could continue to fall and touch $0.22. A bearish reversal from this support area will invite more sellers and likely accelerate the decline to the recent lows of $0.18.