Dogecoin Extends Gains in the Aftermath of Supportive Entrepreneur Comments

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DOGE/USD Analysis

Dogecoin had collapsed in the second quarter of the year, as it was unable to escape the broader crypto rout, losing around half of its value within that period. This slump culminated to June's 15-momth low (0.4900), but the altcoin managed to react from those levels, having now entered its second straight constructive month.

It opened the current week strong, in line with most of it major peers and extends its advance today, gaining more than 3% at the time of writing. As such, DOGE/USD outperforms other cryptos, which struggle to capitlalise on Monday's gains, with FXCM CryptoMajor Basket facing difficulties today.

Dogecoin is known for having the support of Tesla's boss, Elon Musk, who often tweets about the popular altcoin. Tesla Motors Inc accepts Doge as form of payment for merchandise and in late-May, Mr Musk had revealed that it would soon become acceptable for SpaceX merch as well, his spacecraft company. [1]

On Sunday, the altcoin attracted some positive comments from another prolific entrepreneur, Mark Cuban, during an interview with Altcoin Daily. The owner of NBA's Dallas Mavericks, said that "I still think Doge's got more applications, potentially available to it, than …Cardano". Mr Cuban added that the opportunity for Cardano (ADA/USD) is "greater", until Doge "really becomes a platform for applications".[2]

These comments have helped DOGE/USD, which looks towards the 23.6% Fibonacci of the April High/June Low slump (0.0794-96), although it will likley need fresh impetus for taking it out. Daily closes above it can open the door towards the 38.2% Fibonacci (around 0.1000), but we are still a bit cautious around the ascending prospects.

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On the other hand, the recent recovery of DOGE/USD is still rather limited and the Relative Strength Index (RSI) moves to overbought readings. As such, we could see renewed pressure below the EMA200 that would create risk for new monthly lows (0.643), but a catalyst would be required for that and 0.4900 is distant.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 09 Aug 2022 https://twitter.com/elonmusk/status/1530209049261658112

2

Retrieved 01 Oct 2022 https://www.youtube.com/watch

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