• Wed. May 29th, 2024

Dogecoin’s journey to $0.07 reignited as price jumps. What next?

  • Dogecoin sends mixed signals amid the latest market recovery
  • The cryptocurrency gained 6% on Wednesday amid high social interest
  • DOGE looks set to reclaim the $0.07 level after intraday gains of 6%

Dogecoin DOGE/USD continues to send mixed signals despite recent recoveries. A bull signal was after breaking above a short-term descending trendline that sent the meme token to $0.068. The ascend was quickly followed by a bearish pin bar below the crucial resistance.

Typically, pin bars communicate price rejection. A bearish pin bar will be characterised by a long wick on the upper side and a small body. It occurs when the price closes significantly lower than the open. That’s exactly what happened to DOGE, as the price hit $0.068. The formation of a bearish pin bar pushed the price down to $0.060.

However, on Wednesday, DOGE rose by 6%, recovering from the $0.060 bottom. LunarCrush ranked the cryptocurrency in the first position by social interest. That came as Elon Musk hinted at proceeding with the Twitter acquisition. Investors have been speculating that the “Doge father” will allow the meme token as payment.

Dogecoin price outlook amid ongoing correction

Source – TradingView

Keeping the breakout on the descending trendline in mind, DOGE should be considered bullish. The proposition arises because the meme token is yet to break below the key support at $0.060. 

Besides, following renewed strengths, DOGE bulls have overcome a slide below the support. The formation of a long bullish bar at the level shows a strong buyer interest, a bull catalyst.

Concluding thoughts

Buyers may take control of DOGE to the $0.07 resistance. Musk news is a key bull trigger that could sustain DOGE to the key level. Investors should consider buying on a potential retracement.

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