DOGE “barks” at the bears

As the title of this column suggests, our aim is to highlight the momentum “DOGE coin” has been showing lately. The coin is on an excellent uptrend, delivering outsized returns compared with the rest of the market. We saw new highs on the chart, and we consider the main drivers to be the announcements by eToro and Robinhood that their platforms’ customers will be able to add the coin to their digital wallets. And who wouldn’t want a hidden treasure at a time when some have racked up big gains?

We don’t have inside information on whether the strong buying interest came mainly from eToro and Robinhood wallets or is simply a speculative move by traders taking advantage of the news, and certainly of the publicity from Elon Musk. Clearly, Elon Musk’s recent tweet a few days ago “pushed the coin” and turned investors’ eyes toward it.

Let’s move on now to DOGE’s chart and technical analysis, as we are supporters of technical analysis and like to explain the market’s behavior on the basis of a technical pattern. So here is our own technical analysis.

We’ll start our analysis with the big rally that came first as our reference point, from the 0.10 area up to 0.45 (1st green arrow from the left). It was followed by a corrective down wave to 0.16 (red arrow), which was mainly due to selling by Chinese wallets (according to reports online). Finally, we’ll focus on the last green arrow on the chart, where DOGE rallied strongly from 0.16 to 0.60, fueled mainly by the developments (eToro, Elon Musk) mentioned in the previous paragraph. On May 4 we see DOGE post +30% on the daily, showing its strength against the market’s “bears,” who made their appearance that same day (most of the market posted a corrective drop of around −5%). This move (green arrow from 0.16 to ~0.60) lines up with the harmonic Fibonacci levels, specifically the 161.8% level. At that level, around the 0.62 area, “Fibonacci” suggests the corrective scenario that DOGE will catch its breath after the rally.

In the medium term the move fairly needs a pause, since it happens to be a rise of about 300% (0.16–0.62)!!!

In any case, we believe there was an excellent opportunity to buy above €0.37 when it broke the 61.8% level of the down move, and again on the upside break of €0.45, when the coin really started heading to stratospheric levels for the current period (a month ago the price was below 0.10). Big profits were surely made by any traders who had the sixth sense to sniff out “what’s going on in the market.” Quite a few others are banging their heads against the wall, since they didn’t believe, or still don’t believe in, Elon Musk’s vision and determination. The cryptonomy team backs the multibillionaire, as he has proven in exemplary fashion that he can see very far ahead, or, as we might say, “out of this world.” Many articles and columns have been written online about DOGE, and many investors are surely still smarting over it. Quite a few analysts and market forecasters say DOGE will be the fare for someone’s trip to space via SpaceX. For now we consider these rumors and are waiting to see what turns out to be true.

The question is when the dog will reach the moon, and where the moon actually is, since at the time of writing DOGE is trading at uncharted levels!!