DOGE price after weeks of unimpressive price action made a quick 10% surge from $0.18 to $0.203 thanks to Dogefather’s new Twitter profile photo. However, the “the musk effect” dint last well as a retracement followed right after.
Although this shilling didn’t work well for Doge, the daily trading volumes for Doge paint a positive picture. Dogecoin’s trading volume has surged more than 13 times in Q2 2021, hitting $1 Billion daily.
Data from Coinbase suggests that Dogecoin’s trading volume surged 1250% during April – June. a staggering $995Million Doge has been traded on average during the quarter. Dogecoin in the first quarter had an average daily volume of just $74 Million. This development is partly thanks to the listing of Doge by Coinbase, Etoro, Gemini, and the Dogefather of course.
Dogecoin Price Outlook
Doge has been consolidating for weeks with bulls unable to take control, but now a potential breakout pumping the prices 20% is a possibility by the means of governing chart pattern.
The chart suggests The buy signal from the Momentum Reversal Indicator (MRI) in the previous daily candle has helped the Dogecoin price approach the topside trend line of the parallel channel.
Another parallel channel is drawn over the current pattern to analyze a potential target. The pattern implies a 20% increase, with the upper boundary of the topside trend line of the parallel channel above reaching $0.23. However, this pattern to validated only if Doge continues an uptrend from its current price.
In case of an extended bull rally, the price can surge to $0.27 too. Although, a dip in price will put the $0.16 support level to play.
Tumbling down to $0.16 will form a head and shoulders pattern. If this formation plays out, it poses a threat of a 78% decline to $0.0177. However, the support levels to hold in case $1.16 is breached are at $0.08 and $0.04. Holding on to these levels could prevent a downtrend.
For Dogecoin to hold on to its current price levels and start an uptrend, a strong catalyst will be required. Not to forget, the Bitcoin discussion between Jack Dorsey and Elon Musk on July 21st is just around the corner. If Musk mentions Dogecoin in a favorable light, the price of the cryptocurrency might skyrocket.
While this is a possibility, it could have no effect on the price too just like the SNL event proved to be not so beneficial for Doge. Will the event boost prices or not is to be watched out for.