Dogecoin (DOGE) has seen a 5% increase in price over the past 24 hours, reflecting the overall trend in the cryptocurrency market. Despite a 2.4% decrease on August 30th, DOGE is still up 5% from its previous low. This rise in price coincides with positive news and developments in the crypto industry.
One significant event that has impacted Dogecoin’s price is the recent ruling by a federal court in favor of Grayscale Investments, a crypto investment platform. The court ruled that the U.S. Securities and Exchange Commission (SEC) unjustly prevented Grayscale from converting its Bitcoin trust into an exchange-traded fund (ETF). This ruling has raised hopes that a spot Bitcoin ETF will become a reality in the U.S. market, leading to increased optimism and activity in the crypto sector.
The price of Bitcoin, which has a strong correlation with Dogecoin, also experienced a significant jump of nearly 8% on the day of the ruling. This increase had a positive effect on other cryptocurrencies, including Dogecoin. The correlation between DOGE/USD and BTC/USD is currently at 0.96, indicating a strong relationship between the two assets.
Furthermore, the recent news of Elon Musk’s involvement with payment services for X (formerly known as Twitter) has also contributed to the rise in Dogecoin’s price. Rhode Island regulators granted X a currency transmitter license, allowing the platform to offer financial services, including crypto. Musk, a supporter of Dogecoin, has hinted at the possibility of adding DOGE payments on X, sparking rumors and speculation that have influenced the cryptocurrency’s price on multiple occasions.
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From a technical perspective, Dogecoin has been trading within a bear flag pattern since August 17th. A bear flag is typically considered a bearish continuation pattern, suggesting a potential breakdown in the coming weeks. The target price for DOGE/USD based on this pattern is around $0.051 by September, representing a decrease of over 20% from current levels.
However, some analysts argue that Dogecoin’s strong fundamentals could support its price in the long term. Despite the short-term bearish pattern, the cryptocurrency is testing a multi-year descending trendline resistance as support, which could confirm a breakout if sustained.
There are also two key technical resistances to overcome: the 50-week exponential moving average (EMA) near $0.079 and the 200-week EMA near $0.086. Breaking above these levels could result in a price target of $0.106, a 60% increase from current levels. This price level has previously served as both support and resistance in the past.
It is important to note that this article does not provide investment advice or recommendations. Investing in cryptocurrencies carries risks, and readers should conduct their own research and analysis before making any investment decisions.
