DOGE Bulls Eye $0.0750 on Easing Fed Fear and US Jobs Report
- On Friday, DOGE joined the broader crypto market in positive territory, rising by 2.10% to end the day at $0.0728.
- Elon Musk-related news failed to distract investors, with DOGE tracking the broader market on US economic indicators and US debt ceiling news.
- The technical indicators turned bullish, signaling a return to $0.0750.
On Friday, DOGE rose by 2.10%. Reversing a 0.42% loss from Thursday, DOGE ended the day at $0.0728. Significantly, DOGE held onto the $0.072 handle for the first time in three sessions.
A bearish start to the day saw DOGE fall to a first-hour low of $0.0709. Steering clear of the First Major Support Level (S1) at $0.0706, DOGE rose to an early evening high of $0.0734. DOGE broke through the First Major Resistance Level (R1) at $0.0721 and briefly through the Second Major Resistance Level (R2) at $0.0730 before easing back to end the day at $0.0728.
US Economic Indicators and Debt Ceiling News Delivered Support
It was a busy Friday session. Going into Friday, news of the passing of the Debt Limit Suspension Bill provided support, with the US avoiding a Monday default.
US economic indicators contributed to the upside, with a rise in the US unemployment rate pinning back bets on a Fed interest rate hike in June.
With the crypto market facing increased lawmaker scrutiny, the release of the Digital Asset Market Structure Proposal was also bullish. The proposal aims to formally categorize cryptos as securities and commodities to assign clear boundaries to regulate the digital asset space to the CFTC and the SEC.
Chairman of the Financial Services Committee Patrick McHenry had this to say,
“This discussion draft is the first step toward delivering on Republicans’ commitment to develop clear rules of the road for the digital asset ecosystem.”
DOGE News Sends Bearish Signals
While DOGE enjoyed support throughout the Friday session, Elon Musk-related chatter drew further attention.
Memecoin investors allege Elon Musk engaged in market manipulation to drive up the price for DOGE.
According to a Court filing with the US District Court Southern District of New York,
“This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading by the world’s richest man Elon Musk, who hijacked an emergent pop-culture phenomenon to cross-promote himself and his companies and to pad his obscene fortune, preying on the earnest hopes of vulnerable Americans, including war veteran, blue-collar workers, and the elderly.”
Between December 2021 and May 2022, the website reportedly garnered an impressive 2.7 billion visitors and never dropped below 390 million visitors each month during the period stated.
The Day Ahead
It is a quiet Saturday session, with no US economic indicators for investors to consider. The lack of economic indicators will leave DOGE in the hands of the crypto news wires. While SEC v Ripple chatter, SEC activity, and Binance and Coinbase (COIN)-related news would move the dial, investors should also track Elon Musk chatter.
DOGE Price Action
This morning, DOGE was down 0.14% to $0.0727. A bearish start to the day saw DOGE fall from an opening price of $0.0728 to a low of $0.0721.
Resistance & Support Levels
|R1 – $||0.0738||S1 – $||0.0713|
|R2 – $||0.0749||S2 – $||0.0699|
|R3 – $||0.0774||S3 – $||0.0674|
DOGE needs to avoid the $0.0724 pivot to target the First Major Resistance Level (R1) at $0.0738. A move through the Friday high of $0.0734 would signal an extended breakout session. However, Elon Musk chatter and the crypto news wires must support a breakout session.
In the case of an extended rally, DOGE would likely test the Second Major Resistance Level (R2) at $0.0749 and resistance at $0.0750. The Third Major Resistance Level (R3) sits at $0.0774.
A fall through the pivot would bring the First Major Support Level (S1) at $0.0713 into play. However, barring a crypto-event-fueled sell-off, DOGE should avoid sub-$0.0700 and the Second Major Support Level (S2) at $0.0699. The Third Major Support Level (S3) sits at $0.0674.
The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
At the time of writing, DOGE sat at the 100-day EMA, currently at $0.0725. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered bullish signals.
Avoiding a fall through the 100-day EMA ($0.0725) would support a run at R1 ($0.0738) and the 200-day EMA ($0.0741). However, a fall through the 100-day ($0.0725) and 50-day ($0.0721) EMAs would bring S1 ($0.0713) into view. A fall through the 50-day EMA would send a bearish signal.