Dogecoin Bulls Became Stronger After Coinbase Listing – Can Price Move Higher?

Dogecoin Bulls Became Stronger After Coinbase Listing – Can Price Move Higher?

 Published: June 2nd, 2021

Dogecoin’s market cap reached nearly $4 billion today, making it the 7th largest cryptocurrency in the world. This famous cryptocurrency shook the investment world as soon as Coinbase listed it for trading from Thursday. It is a significant milestone for Dogecoin that will increase both trading activities and volume.

Dogecoin was launched in 2013 as a jokey alternative to mainstream crypto assets. Until today, Tesla CEO Elon Musk repeatedly sent the Dogecoin price to the sky through internet promotion and personal investment. Moreover, the most recent 20% surge in Dogecoin came from Armstrong’s comment on Elon’s work with Doge devs to improve efficiency.

According to the Coinbase blog, they will accept dogecoin for trading to Coinbase Pro members, where the trading is supported. However, they will allow post-only and limit-only orders only before moving with full force.

Dogecoin showed a decent bullish pressure in the price chart as soon as Coinbase listed it for trading. Before that, the price rejected the 0.20 support level on 19 May and started to move higher. Can it push above the 0.50 level? Let’s see the upcoming price direction from the Dogecoin technical analysis:

Dogecoin Daily Chart

Dogecoin Daily Technical Analysis 2 June 2021

Dogecoin reached a record high above 0.70 level at the beginning of May and moved down to 0.2124 level with a volatile bearish pressure. The price failed to break below the psychological 0.20 level and created multiple higher lows. Therefore, as the price remained above the 0.20 support level, it may move higher towards the 0.50 level.

In the above image, we can see the daily chart of Dogecoin, where the price breaks above the symmetrical triangle with a bullish daily close. Moreover, the current daily candle is above the dynamic level of 20 EMA. So, another bullish close above the 20 EMA may continue the current buying pressure towards the 0.50 level.

Moreover, MACD Histogram is still bearish but squeezed to zero levels where any positive Histogram above the zero levels may increase the buying pressure to the price.

Dogecoin H4 Chart

Dogecoin H4 Technical Analysis 2 June 2021

Based on the Ichimoku Kumo Cloud analysis, the price moved below the Cloud support on 19 May but failed to create new lows. Later on, the price moved above the Cloud resistance with an impulsive bullish pressure, pointing out that buyers’ started to take the price higher.

The above image shows that the price is above dynamic Tenkan Sen and Kijun Sen, and Chikou Span moved higher above the recent consolidation. Moreover, the Senkou Span is above the Senkou Span B in the future cloud and moving higher.

In the market condition, the price has a higher possibility of continuing the bullish pressure as long as it is trading above the cloud resistance. The primary target of the bullish pressure would be the 0.50 psychological resistance level.

On the other hand, the gap between the price and dynamic Kijun Sen has expanded while the RSI reached the overbought level. Therefore, the price may come lower as a correction of the Kumo breakout. Any further bearish rejection from Kijun Sen may increase the bullishness to the price, but any strong bearish H4 close below the 0.30 cloud support would take the price down.

Dogecoin H1 Chart

Dogecoin H1 Technical Analysis 2 June 2021

In the intraday chart of Dogecoin, the price made a decisive breakout above the intraday event level of 0.3622. Moreover, the price bounced off from dynamic 20 EMA and vwap, which indicates upcoming bullish pressure.

In the above image, the price made new highs on intraday high-volume levels while dynamic vwap is pointing up. In MACD, the Histogram turned bullish and made new highs as soon as the price moved above dynamic 20 EMA.

However, the price moved above the 0.3622 event level, where a bearish correction is pending. In this market context, the price may correct lower, and any bearish rejection from the dynamic 20 EMA may increase the bullish pressure with the target of 0.50.

Conversely, a stable H1 close below the dynamic vwap level may invalidate the current bullish possibility. In that case, the price may come lower again towards 0.2124 low.

Should You Try Buying Dogecoin?

As of the above discussion, we can say that the Dogecoin has a higher possibility of moving higher towards 0.5900 resistance level. Both intraday and daily charts are showing buying pressure on the price, supported by the recent news of Coinbas listing.

However, a solid bearish H4 close below the Cloud support 0.30 may initiate a bearish pressure to the price where the ultimate target would be 0.20.

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