Dogecoin Price Analysis 19/04: DOGE Meme Pump on 4/20, Indicators Suggest Potential Reversal

Dogecoin Price Analysis 19/04: DOGE Meme Pump on 4/20, Indicators Suggest Potential Reversal

Time Stamp: April 19, 2023 7:24 AM

SNEAK PEEK

  • Dogecoin may experience a meme pump on 4/20, fueled by Musk’s influence.
  • Technical indicators suggest an oversold market with the potential for a bullish reversal.
  • Falling MFI and RSI indicate escalating selling pressure and caution for long bets.

Dogecoin (DOGE) may experience a price boost tomorrow, according to a tweet from well-known cryptocurrency trader Kaleo (@CryptoKaleo) yesterday. In the tweet, Kaleo mentioned that since tomorrow is April 20, also known as 4/20 among the DOGE community, there’s a probability that the coin’s price may experience a meme pump. April 20 has historically been a day of price pumping for DOGE. 

The DogeFather himself, Elon Musk, is regarded by many in the cryptocurrency community as having been behind these price pumps, carried out on 4/20 as a parody of one of his presentations on The Joe Rogan Experience.  

After being caught consuming marijuana on the well-known podcast during his one visit, Musk sent investors into a frenzy. Kaleo and many other members of the crypto community think that DOGE’s price will increase tomorrow due to this and Musk’s significant influence inside the DOGE community.

When writing, the price was $0.09067, down 2.48%. DOGE’s market capitalization and 24-hour trading volume declined by 2.66% and 35.33%, respectively, to $12,597,255,835 and $791,817,595 This drop shows investor concern, despite the 4/20 “Dogeday” hype, which is expected to propel the price of DOGE to $1. 

The Fisher Transform line on the DOGE market’s 4-hour price chart is below the signal line and has a value of 0.90, showing that the market is oversold and a potential buying signal is approaching. The reversal will be visible if the fisher transform line crosses the signal line correctly.

On the 4-hour price chart, the stochastic RSI is below its signal line with a reading of 28.25. This action indicates that the asset has been oversold and could shortly make a bullish upward turn. If the DOGE market’s stochastic RSI crosses the signal line, a probable trend reversal or change in direction may be signaled.

DOGE/USD 4-hour price chart (Source: TradingView)
DOGE/USD 4-hour price chart (Source: TradingView)

By indicating escalating selling pressure, the Money Flow Index (MFI), which has a reading of 48.74 and is trending downward, supports the bearish momentum in DOGE. If the MFI continues to decline and breaks below the oversold level, traders should use caution when evaluating long bets. This movement can be a sign of a more serious downward trend to come.

The Relative Strength Index (RSI), currently reading 39.49, is declining below its signal line and entering the oversold region. DOGE may still be experiencing some short-term negative pressure. This motion means that traders might wait to enter an extended position until the RSI crosses above its signal line and leaves the oversold area.

DOGE/USD 4-hour price chart (Source: TradingView)
DOGE/USD 4-hour price chart (Source: TradingView)

In conclusion, DOGE’s oversold market indicates potential for a bullish reversal, but caution is advised as downward momentum persists. Will the 4/20 meme pump push DOGE’s price higher or exacerbate the bearish trend?
Disclaimer: Cryptocurrency price is highly speculative and volatile and should not be considered financial advice. Past and current performance is not indicative of future results. Always research and consult with a financial advisor before making investment decisions.

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