Key takeaways:
Dogecoin (DOGE) jumped 2.5% to $0.20 because the market’s consideration turned to Elon Musk’s newest X post, that includes the memecoin mascot Shiba Inu. DOGE value surged 29% in response.
The transfer prolonged DOGE’s sharp rebound from its current low of $0.13, its lowest degree since April, marking a 55% restoration in simply two weeks.
Musk’s tweets famously fueled DOGE’s explosive 2021 rally from mere cents to almost $0.73.
Now, with sentiment enhancing and a number of technical indicators flashing bullish indicators, the highest memecoin seems poised to increase its restoration within the second half of October.
DOGE’s A&E indicator hints at 25% positive factors subsequent
Dogecoin is forming an Adam and Eve double-bottom sample, a bullish reversal setup the place a pointy “V”-shaped drop (Adam) is adopted by a rounded restoration (Eve). This sample indicators that promoting stress is fading whereas patrons are regaining management.
DOGE’s neckline sits close to $0.216, and a confirmed breakout above this degree may set off a transfer towards $0.260, about 25% larger than present costs.
The goal aligns with the sample’s measured transfer projection and coincides with a key technical confluence zone. It additionally matches the 0.382 Fibonacci retracement degree on DOGE’s weekly chart, as proven beneath.
The rebound prospects achieve additional energy as DOGE rebounds from a assist confluence comprising an ascending trendline and a 0.236 Fib line, reinforcing the concept that patrons are defending decrease ranges, whereas eyeing $0.26 because the interim upside goal.
Quick squeeze can assist DOGE attain $0.26 goal
Futures information shows a heavier focus of brief liquidations between $0.215 and $0.27, whereas lengthy liquidation ranges stay comparatively flat beneath $0.18.
This imbalance suggests a decrease draw back threat, with fewer leveraged longs positioned to set off important promote stress. Conversely, the upside has a dense liquidity wall of shorts ready to be squeezed.
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Due to this fact, a breakout above the $0.216 neckline may unleash a wave of brief liquidations, accelerating a transfer towards $0.26 as bearish merchants are compelled to purchase again into the rally.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.
