Price analysis: Dogecoin spikes 37% after Elon Musk tweet

Dogecoin’s value against the US dollar has jumped nearly 37% and is now trading 65% higher than its price a week ago

Dogecoin (DOGE) is up by almost 37% following a weekend of massive upsides for various cryptocurrencies. The top digital asset Bitcoin reached a new all-time high of $24,209 on 20 December, while Bitcoin Cash (BCH), Bitcoin SV (BSV), and Dash (DASH) also saw some impressive gains.

Among the top 50 cryptocurrencies, Dogecoin (DOGE) surged 15% on Saturday, then went up 17% on Sunday and has gained 37% at the time of writing.

For the DOGE/USD pair, the enormous move over the past two days coincides with a spike in sentiment after Elon Musk tweeted about the meme coin. The Tesla and SpaceX CEO also changed his Twitter bio to “Former CEO of Dogecoin”, which appears to have catapulted the altcoin into stardom on social media.

It is not clear how far the price will rise after this pump. However, the current outlook suggests DOGE/USD could hit highs around $0.010 short term.

DOGE/USD

DOGE/USD daily chart. Source: TradingView

The daily chart has the MACD strengthening within the bullish zone, while the RSI suggests buyers are in control as it increases above 75.  Dogecoin price could climb above $0.006 if bulls break above $0.0056 and hold gains into the daily close.

If the momentum fades and the bears make a stance, DOGE/USD could first drop to $0.0049 and then $0.0045. The initial support levels are around the 23.6% and 38.2% Fibonacci retracement levels of the upswing from $0.0028 low to $0.00554 high. Prices could then drop to $0.0038 and the 50-SMA ($0.0032).

DOGE/USD hourly chart. Source: TradingView

On the hourly chart, DOGE/USD is trading above the 100 hourly simple moving average and looking to strengthen near the upper boundary of an ascending channel.

However, the upper trendline of the parallel channel has capped the potential breakout around $0.0055. If bulls break above and rally to $0.0058, the next step above $0.006 could involve a retest of $0.010 and then at the all-time highs around $0.018.

Conversely, if bears push below $0.0052 (the middle line of the channel), prices could drop to the lower boundary ($0.0047). The next major support level is around the 100-SMA ($0.0040) and then at $0.0036.