DOGE price needs to hold support at $0.29 to retain the upside advantage

Dogecoin’s price history in 2021 shows that a new pump could materialise at any time. It is not something to discount, especially if its most prominent supporter Elon Musk talks about DOGE, which has pumped the coin in the past.

Yesterday, DOGE shot up 20% to trade at highs of $0.34 after the Tesla CEO referenced “Dogefather” in his tweet about an event he will participate in on 8 May.

Dogecoin (DOGE) is changing hands at around $0.31 as of writing, about 7% up on the day as bulls seek fresh gains. Although the cryptocurrency has lost some of the gains registered on 28 April, the technical outlook suggests another leg up is likely if bulls rebound off support at $0.29.

The cryptocurrency might also benefit from a broader rally in the altcoin market. Several coins are green, with Ethereum up by 4% to currently trade at $2,728, while Cardano has gained 8% as bulls target an upside to $1.50.

Dogecoin price analysis

DOGE/USD is trading above a bullish trend line formed on the 4-hour chart, with support around $0.30.

The cryptocurrency is seeing some downside pressure, probably from profit-taking deals but remains in a bullish zone. The sell-off might take prices to the trend line support, which also offers a horizontal support line at $0.29.

If bulls rebound off the $0.29-$0.30 zone, there’s a likelihood of breaching overhead resistance at $0.34. The next target would be the supply wall near $0.40, above which bulls could target a high of $0.43.

DOGE/USD 4-hour chart. Source: TradingView

Conversely, if bears continue to stand firm amid further losses, primary support lies at the 50 SMA ($0.27) and the 100 SMA ($0.26).

If DOGE price slips below the moving averages, it could continue lower and touch $0.22. A bearish flip from this support zone will invite more sellers and likely accelerate the decline to recent lows of $0.18.

This post was originally published on Coinjournal.