The popular altcoin Dogecoin (DOGE) has seen a crazy rise in the past few hours. The coin has increased by over 1,000 percent in a day. So is the rise of Dogecoin (DOGE) a temporary pump or a first step towards long-term growth? The market continues to make a short term correction now. Popular analyst Denys Serhiichuk commented on the Dogecoin market and pointed to critical levels.
Popular altcoin Dogecoin analysis: Will the dump be as fast as a pump?
Dogecoin (DOGE) is the altcoin with the biggest gains in the last few days. While some cryptocurrencies have gone up by several hundred points, DOGE recently rose almost over 1,000%. As Kriptokoin.com previously reported, Dogecoin's price started to rise after one of the leaders of the WallStreetBets movement posted a provocative tweet about the popular cryptocurrency.
DOGE / USD price chart - Source: TradingView
Tesla CEO Elon Musk then fueled this upward movement with another tweet. So will this upward trend continue? According to popular analyst Denys Serhiichuk, on the hourly chart Dogecoin (DOGE) is in a bearish trend, forming the "Head and Shoulders" pattern. If the altcoin drops below $ 0.05 and corrects there, chances are high to see a retest of the MA 50 referring to the area around $ 0.025.
According to Denys Serhiichuk, DOGE now targets these levels
In the larger timeframe, according to Denys Serhiichuk, Dogecoin (DOGE) is on the verge of the overbought zone, according to the RSI indicator, is falling. In this case, a drop to $ 0.028 can be expected to the nearest support to gain strength for a future rise.
According to Denys Serhiichuk from a long-term perspective, there is no liquidity at the current levels to sustain continued growth. Therefore, a drop to the $ 0.014 level can be expected for retesting, according to the analyst. However, according to Denys Serhiichuk, such a move will be part of a correction after sharp growth. Dogecoin is trading at $ 0.03 at the time of writing.
