After the recent decline, Dogecoin regained the focus of the market by holding on to the support zone around $0.081. The meme-themed cryptocurrency recently traded at around $0.088 after dropping from $0.113 to a low of $0.078.
Technical outlook and major investor movements came to the fore
In the latest evaluations in the market, the long-term chart shared by cryptocurrency analyst Trader Tardigrade stood out. The analyst noted that on the monthly Heikin Ashi chart, Dogecoin has retested the top of the multi-year triangle formation. Dogecoin is known as a crypto asset that was born on social media and has reached a wide investor base over the years.
Mini dictionary: Heikin Ashi is a charting method that aims to follow the direction of the trend more clearly by showing price movements more smoothly. Unlike classical candlestick charts, opening and closing values are created with a special calculation.
Trader Tardigrade compared the current structure with the similar outlook in the 2017 and 2020 cycles. According to the shared chart, in both periods, the peak was retested after the triangle compression, and then sharp increases were observed. The analyst argued that Dogecoin has completed a similar retesting process.
According to Trader Tardigrade’s assessment, Dogecoin retested the top of the triangle formation on the monthly chart, and this structure was similar to the appearance in the 2017 and 2020 cycles.
Market data also pointed out that buying interest in the support zone increased. It was reported that major investors collected more than 200 million DOGE in the first week of June. This move contributed to strengthening the support around $0.081.
| Indicator | Level |
|---|---|
| Price before last drop | $0.113 |
| Last low | $0.078 |
| Watched support zone | $0.081 |
| Current transaction level | $0.088 |
In addition, some market participants stated that a Tom DeMark Sequential buy signal was formed on the charts. This indicator is associated with short-term recovery phases.
ETF and Musk-related developments increased interest
Apart from the charts, some external developments in the cryptocurrency market have also kept interest in Dogecoin alive. Asset management company T. Rowe Price’s SEC-approved Active Crypto ETF product TKNZ can hold up to 15 digital assets in its portfolio, and Dogecoin is among the selected cryptocurrencies. T. Rowe Price is known as a large asset management company based in the USA.
The inclusion of Dogecoin in the active crypto ETF codenamed TKNZ, which received SEC approval, showed that the asset also found a place in multiple digital asset baskets.
During the same period, news flow regarding SpaceX’s Nasdaq IPO also increased interest in assets associated with Elon Musk. Following this development, Dogecoin price increased by approximately 6%. Some investors in the market attributed the move to buying into assets linked to the Musk effect.
On the mining side, Dogecoin remained on the agenda. It was stated that the compact home mining device Nexus L1, introduced for a price of approximately $ 400, uses Bitmain Antminer L9 chips and targets Scrypt-based low-power mining. Scrypt is among the algorithms used in Dogecoin mining.
While Dogecoin’s technical outlook, inclusion in corporate products, major investor acquisitions and developments regarding mining equipment are monitored together, market participants are monitoring whether the price can maintain the current support zone.
