Dogecoin: Right Time to Buy Before the Next Explosive Breakout?
Michele Schneider | May 22, 2024 02:23AM ET
On the heels of Meme Stocks Mania that literally lasted less than a week, and with so much in the news this week, I figured it was time to revisit this meme coin.
Dogecoin was launched on December 6, 2013, as a joke.
Within the first 30 days, there were over a million visitors to Dogecoin.com.
On December 19, 2013, Dogecoin jumped nearly 300% in value in 72 hours. Three days later, it crashed by 80%.
In January 2021, Dogecoin went up over 800% in 24 hours. Attention from Reddit users plus encouragement by Elon Musk forced the short squeeze.
DOGE is mainly driven by speculation, and many believe is interest rate sensitive.
Hence the big rally in 2021 was partially due to meme stock squeezes while interest rates were at zero.
Today, DOGE is the top Crypto meme coin by market capitalization with $24.90 billion.
I am now looking at the coin because...
- Tesla (NASDAQ:TSLA) rallied which could suggest Musk’s reputation is growing again.
- GameStop (NYSE:GME), although back down, is in the news with RFK Jr buying $24,000 worth of the stock to spur “retail rebellion.”
- Technically, DOGE looks better.
Beginning with the real motion indicator on the bottom of the page, Dogecoin shows momentum improvement.
While the momentum shows clearing the 200-DMA after a mean reversion, the 50-DMA has not cleared since early April.
On the price chart though, we have a confirmation above the 50-DMA and a confirmed phase change to bullish.
While there is some resistance at .1731, it is possible to see dogecoin trade back up to .22 where it was in March 2024.
Dogecoin cleared the 50 and 200-week moving averages for the first time since early 2023.
Should we get a golden cross, it would be the first in over 3 years. In early January 2021, that golden cross resulted in a four-month rally with prices surging over 8,000% to $.76 cents.
ETF Summary
- S&P 500 (SPY) Consolidating at all time highs
- Russell 2000 (IWM) 210.80 ATHs remain slightly elusive
- Dow (DIA) 40,000 now pivotal
- Nasdaq (QQQ) Consolidating at all time highs
- Regional banks (KRE) Can this clear the 23-monthly MA?
- Semiconductors (SMH) Consolidating at all time highs
- Transportation (IYT) 64 support 67 resistance-weak
- Biotechnology (IBB) 135 support 140 next resistance
- Retail (XRT) 75 key support
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) 77.00 once again pivotal support
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