Dogecoin Price Surges Amid New Elon Musk Tweet—Is a Breakout Imminent?
Investors are taking notice of Dogecoin’s latest price spike, as the meme coin experienced a significant upswing on the last day. This rise came after Elon Musk, often known as the DOGEFather, alluded to the cryptocurrency in a tweet. Market observers are hopeful that DOGE will soon surpass the six-month high that its price movement has gotten near.
Dogecoin Holds Steady as 29% of Investors Turn Profitable: Will Selling Pressure Increase?
The MVRV Long/Short Difference metric shows that the market sentiment for Dogecoin is stable at the moment. This statistic indicates that the asset is not unduly skewed towards either group because the profit or loss levels of long- and short-term investors are comparable.
Dogecoin seems to be experiencing tremendous macro momentum, particularly when it comes to active addresses and investor profitability. The fact that 29% of all DOGE investors are currently profitable is a positive indication but might also lead to selling pressure. In the past, some investors had a tendency to sell when the percentage of lucrative addresses rose above 25%, which may have an impact on short-term volatility. Dogecoin may experience some brief downward pressure if more holders turn a profit.
Dogecoin Bulls Aim for $0.20, But $0.17 Resistance Level Could Delay Rally
Elon Musk’s DOGE tweet caused Dogecoin’s price to rise 13.73% in the last day, and the meme coin is taking advantage of the bullish momentum that might push it closer to $0.20. Reaching this goal would be a noteworthy accomplishment, as it is almost 21% higher than DOGE’s current trading level.
Notwithstanding the favorable aspects, DOGE can run into opposition at $0.17 before reaching its peak of $0.20, which is six months away. If the asset is unable to break through, this resistance level may momentarily halt the rally, postponing additional upward momentum and reducing short-term optimism. A retracement to $0.14 could happen if DOGE is unable to overcome the $0.17 resistance, which would cast doubt on the bullish prognosis.
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