Dogecoin Broke Its Downward Trend and Is Taking Baby Steps Going Upward Two Days After Musk's Support

Global stocks had a difficult last week, and cryptocurrencies were no exception! Whether it is exchanges such as Coinbase or crypto equities, the impact

After a difficult last week for global stocks, cryptocurrencies also had a bumpy ride.

From exchanges like Coinbase to crypto equities, the impact of the market’s sell-off spree was felt across industries and around the world. On Monday, September 9th, the crypto market’s Greed and Fear index, which gauges market sentiment, shifted from Extreme Fear to simply Fear, indicating the beginning of a consolidation phase.

Dogecoin broke its downward trend at 10:15 pm Sunday UTC and began slowly but steadily climbing upwards.

At 11 am Monday (UTC), DOGE is priced at $0.098. The price is closer to the lower Bollinger band, indicating selling pressure. The support level is at $0.090, with the current price being $0.080 above the support level.

Moreover, the volatility of DOGE is low, which is indicated by the ‘squeeze’ formation, which suggests a breakout. The price can either move downwards or continue its upward trajectory, but given the momentum, DOGE is set to move towards a sharper uptick.

The upper Bollinger band stands at $0.112, which could be the new resistance level for the crypto. For a confirmed bullish move, DOGE needs to break out of the price point of $0.101, which is the current 20 simple moving average (SMA). If DOGE manages to move past this, the token will begin testing its resistance level.

According to Moneycontrol, the RSI for Dogecoin is at 34.6, which is relatively closer to neutral, slowly reaching the ‘oversold’ signal.

Elon Musk extended his support for Dogecoin once again on September 7th, with many crypto enthusiasts waiting for the token to take off.

However, this bodes well for investors as DOGE is not falling prey to the market hype. While Elon Musk's support can instill trust and confidence among investors, relying solely on celebrity endorsements is not a sustainable strategy for any crypto in the long run. In contrast, slowly breaking the downward trend, DOGE is making its way up two days after Musk's support. This is good news for DOGE as investors seem to be valuing the token based on its worth rather than joining a market mania. If the token continues to grow, it can reach as high as $0.15 and begin a bull run that could instill more confidence in crypto investors based on its value proposition.

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