On Friday, Dogecoin moved up over 13% higher on the back of hope that Elon Musk's purchase of Twitter would lead to more chatter about Dogecoin.
Recall (and as I posted on Friday), Musk announced in February that his Tesla and SpaceX would accept Dogecoin for merchandise. It wasn't the first time Musk had caused a stir in the dogecoin.
As I wrote at the time..."Musk loves Dogecoin".
On Friday, I pointed out in my post, that technically, the price moved above its 200 day MA at 0.07782 for the first time since November 2021 on Thursday (green line in the chart below). The price did move back below early on Friday, but recovered, and moved back above that key MA on the run back to the upside.
As a result, there was a key risk defining level in place. If the price could stay above the 200 day MA, it would allow the FOMO (FEAR OF MISSING OUT) traders to define and limit risk at the MA level. Stay above and the buyers remain in control.
So what happened?.
Looking at the hourly chart below, the price consolidated into the close on Friday, but found a bid above the 0.8850 area high, on Saturday. The break above led to a "too the moon" launch.
The price surged to a high of $0.1516 on Saturday before finding sellers. That is a 72% run up from the Friday high. Wow!
Looking at the daily chart (the top chart above), the price high moved up to test the 61.8% of the move down from the January 2022 high (high for the year) near $0.15168. Sellers leaned. The price did move lower. Buyers took profit.
The corrective low - off the high - did stall near a swing area on the daily chart near 0.1065 and 0.1103. The low reached 0.1111 just above the high of that swing area.
That area (between 0.1065 to 0.1111) will be risk now for traders looking for more upside momentum. Stay above and the bias remains in favor of the bulls/buyers. Move below and there could be more rotation back down toward the 0.1000 natural support level and potentially back down toward the 0.8900 area on a break of 0.1000.
Needless to say, it was a moon shot for dogecoin as FOMO is still alive and well. We will now look for a reignited liftoff off the corrective support.
PS. My neighbor posted the following picture on Thursday evening. Apparently, SpaceX launched a Falcon 9 rocket from Vandenberg Space Force Base in California on Thursday night. This is the view from Arizona. To the moon!
PSS. Looking ahead, on Tuesday, SpaceX launches again. This time in Florida. Do we have another Dogecoin surge scheduled for liftoff tomorrow at 9:40 AM ET to correspond with the SpaceX launch?
