Cryptocurrency Price Analysis

Dogecoin Price Analysis For December 21, 2020

Dogecoin has witnessed a good performance in the crypto market after the latest comments that were made by Elon Musk, the CEO of car manufacturing company, Tesla. This is not the first time that Musk will be showing his affinity for digital assets as he has always been a strong backer of Bitcoin and other top assets.

In the latest tweet that was shared by Musk on Twitter, the Tesla CEO tweeted “doge”, an action that saw the digital asset witness so many actions across the week and making a bullish in the process. Doge made another history in the market after it hit $0.0047, its all-time high record since July.

Elon Musk tips Dogecoin to do well in the market

With his tweets gaining massive reviews, Musk has noted that he was indeed talking about the meme digital assets. Musk went ahead to tell his 40 million followers that he is a staunch believer in the digital asset and he is backing it to make massive moves in the crypto market.

Before this time, Elon Musk mentioned Dogecoin on Twitter with the CEO mentioning that he sees Dogecoin as a standard for the future. Reacting to the backing around July, Dogecoin made a massive 14% upward move.

Going by a recent article that was published about the CEO of Binance, Changpeng Zhao, he notes that Elon Musk and his company Tesla will eventually dabble into digital assets in the coming years. Even if Tesla does not invest in Dogecoin, one certain thing is that the digital asset is now gaining mainstream adoption as a result of the hype from Elon Musk.

Dogecoin on-chain analysis

Looking at the on-chain analysis of the price of Dogecoin, one would notice that the digital asset has been trading between $0.00372 and $0.00398 in the past few weeks. Presently, the digital asset is trading around the $0.004892 price mark moving up by 27.60% in the last few hours. Its daily trading volume has also skyrocketed, moving above $600,000,000 in the process.

However, the Bollinger bands spell nothing good for the digital asset as they are divergent, and that means that volatility is about to rock the coin in the next few days. But for now, the signal line is still under the candlesticks, which shows that the asset is presently on a bullish run.

The Relative Strength Index was gradually moving close to an overbought region but quickly retraced after the price correction that Dogecoin witnessed. However, this has not stopped the RSI, as it is still trying to move to the overbought region. The 4-hour chart of the MACD currently shows that the asset is battling a bearish divergence.

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