Dogecoin (DOGE) has been one of the most talked-about cryptocurrencies of 2021, thanks to the involvement of high-profile figures like Elon Musk and Mark Cuban. Its value skyrocketed earlier this year, but has since retreated.
As investors and traders keep a close eye on its movements, the next potential catalyst for Dogecoin could be a decisive breakout on higher-than-average trading volume.
Let’s examine the current state of Dogecoin, what traders are looking for in terms of a breakout, and what the future may hold for this popular meme coin.
Dogecoin (DOGE) Recent Performance And Price Action
On Wednesday, Dogecoin’s downtrend was confirmed as the cryptocurrency hit a lower high of $0.074 and formed a lower low at the 7-cent mark on Monday. As of Friday’s 24-hour trading session, Dogecoin was attempting to print an inside bar pattern, indicating a potential bearish trend.
Traders should monitor the crypto’s movement and volume to assess its future direction, especially if it breaks up or down from Thursday’s mother bar.
At the time of writing, Dogecoin’s price on CoinGecko was 0.072436, showing a 3.0% 24-hour rally. However, the last seven days have been challenging for the meme-inspired cryptocurrency, with a significant slump of 9.0%.
Despite the recent decline, there’s a chance that Dogecoin’s local bottom has occurred as it was working to print a hammer candlestick on Friday. This candlestick pattern suggests that the cryptocurrency’s downward momentum may have come to a halt, but it remains to be seen whether it can sustain an upward trend in the coming days.
Potential Catalyst For Dogecoin’s Recent Rally
Dogecoin’s recent 24-hour rally may have been influenced by the recent events on Twitter, which have been previously spearheaded by Elon Musk, the self-proclaimed “Dogefather.”
However, he has now handed the leadership to Linda Yaccarino, NBCUniversal’s advertising chief, who appears to share Musk’s enthusiasm for meme coins.
Yaccarino’s interest in Dogecoin and Shiba Inu is evident from the fact that she follows multiple affiliated accounts on Twitter, including the primary ones for both cryptocurrencies.
However, her views on key issues related to cryptocurrencies, particularly their potential role on social media platforms, remain largely unknown, despite her active presence on Twitter.
It remains to be seen if Yaccarino’s involvement will have an impact on Dogecoin’s future performance, similar to the influence that Musk has wielded over the cryptocurrency.
Only time will tell whether the “Yaccarino Effect” will be a potential catalyst for Dogecoin’s growth in the near future.
-Featured image from EPLAN UK Blog