Dogecoin (DOGE) has seen a resurgence in price action over the last few days. DOGE is currently trading around $0.067, up over 15% from recent lows below $0.06.
According to popular crypto analyst Rekt Capital, Dogecoin appears to be emerging from a period of consolidation. In his latest newsletter, Rekt Capital noted that DOGE had fake-broken down from key support levels last week, including its lower lows trendline. This fake breakdown allowed the bullish divergence to stay intact.
As Rekt Capital stated: “DOGE indeed fake-broke down from its Lower Low (blue) trendline, and also on its Higher Low RSI trendline (blue) as well. Essentially, the Bullish Divergence stayed intact and DOGE has rallied +21% to the upside after a prolonged period at the base of the Channel Bottom.”
Source: Rekt Capital’s Newsletter
This rally of over 20% has taken DOGE back towards the top of its current trading channel. Rekt Capital believes DOGE should be able to revisit the channel top over time. A weekly close beyond the channel top would likely trigger a more decisive breakout for DOGE.
On October 11, 2023, NDTV announced that Dogecoin experienced a surge in profits following Elon Musk’s decision to rename Twitter to “X” and his suggestion of incorporating Dogecoin-related services on the platform.
Additionally, on September 25th Musk indicated a significant Dogecoin update is in the works after conversing with a leading Dogecoin developer. “We will,” Musk responded when asked about updating the Dogecoin icon on X.
The Dogecoin community also seems to be growing more active again, with DOGE co-founder Billy Markus recently asking Musk when Tesla would accept the meme coin as payment.
With chatter and interest in DOGE picking up again thanks to Musk, the original meme coin appears to have come alive after months of muted price action. Traders will be watching closely to see if DOGE can break out of its long-term channel and start a new sustained uptrend.
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