Dogecoin Bucked the Crypto Trend Thanks to Elon Musk and SpaceX

Key Insights:

• On Friday, DOGE rose by 4.63% to buck the broader market trend that saw bitcoin fall for a third consecutive day.
• Elon Musk delivered a much-needed boost, with news of SpaceX planning to accept DOGE for merch payments causing a spike.
• Technical indicators are bearish, with DOGE sitting below the 50-day EMA.

Dogecoin (DOGE) rose by 4.63% on Friday,  supported by Elon Musk’s Twitter account. Partially reversing a 6.15% slide from Thursday, DOGE ended the day at $0.0814.

A bearish morning saw Dogecoin fall to a mid-morning low of $0.076 before finding support.

News from Elon Musk on SpaceX drove Dogecoin to an early afternoon high of $0.0897 before easing back.

Dogecoin broke through the First Major Resistance Level at $0.0826 and the Second Major Resistance Level at $0.0873 before ending the day at sub-$0.0810.

The rest of the crypto top ten saw red, with SOL sliding by 5.30% to lead the way down for a second consecutive day.

Elon Musk and SpaceX Deliver a Dogecoin Breakout

News of SpaceX planning to accept DOGE as payment for merchandise delivered the DOGE breakout session.

On Friday, Elon Musk took to Twitter, announcing,

“Tesla merch can be bought with Doge, soon SpaceX merch too.”

Tesla merch can be bought with Doge, soon SpaceX merch too

— Elon Musk (@elonmusk) May 27, 2022

 

There were no other details, including when SpaceX will begin accepting DOGE payments.

It’s not the first time that Elon Musk influenced the price of DOGE.

Last month, DOGE jumped into the crypto top ten, by market cap, in reaction to Elon Musk’s plans to purchase Twitter.

In December, DOGE got a boost on news of Tesla accepting DOGE for some merch.

Dogecoin Price Action

At the time of writing, DOGE was down 0.21% to $0.08125.

Dogecoin Technical Indicators

A Dogecoin move through the $0.0824 pivot to target the First Major Resistance Level at $0.0887.

DOGE would need the broader crypto market to support a breakout from $0.085.

An extended rally would test the Second Major Resistance Level at $0.0961 and resistance at $0.10. The Third Major Resistance Level sits at $0.1098.

Failure to move through the pivot would test the First Major Support Level at $0.0750. Barring another extended sell-off, DOGE should steer clear of sub-$0.075 levels. The Second Major Support Level sits at $0.0687.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. DOGE sits below the 50-day EMA at $0.0836. This morning, the 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA, DOGE negative.

A move through the 50-day EMA to $0.085 would support a run at the 100-day EMA, currently at $0.090.