Dogecoin price set for 25% jump after Elon Musk’s new cryptic DOGE post

Key takeaways:

• DOGE’s Adam and Eve signifier and Fibonacci confluence constituent to a 25% upside.

• Heavy abbreviated liquidation zones supra $0.216 could substance a crisp rally.

Dogecoin (DOGE) jumped 2.5% to $0.20 arsenic the market’s attraction turned to Elon Musk’s latest X post, featuring the memecoin mascot Shiba Inu. DOGE terms surged 29% successful response.

DOGE/USDT regular terms chart. Source: TradingView

The determination extended DOGE’s crisp rebound from its caller debased of $0.13, its lowest level since April, marking a 55% betterment successful conscionable 2 weeks.

Source: X

Musk’s tweets famously fueled DOGE’s explosive 2021 rally from specified cents to astir $0.73.

Now, with sentiment improving and aggregate method indicators flashing bullish signals, the apical memecoin appears poised to widen its betterment successful the 2nd fractional of October.

DOGE’s A&E indicator hints astatine 25% gains next

Dogecoin is forming an Adam and Eve double-bottom pattern, a bullish reversal setup wherever a crisp “V”-shaped driblet (Adam) is followed by a rounded betterment (Eve). This signifier signals that selling unit is fading portion buyers are regaining control.

DOGE/USDT four-hour terms chart. Source: TradingView

DOGE’s neckline sits adjacent $0.216, and a confirmed breakout supra this level could trigger a determination toward $0.260, astir 25% higher than existent prices.

The people aligns with the pattern’s measured determination projection and coincides with a cardinal method confluence zone. It besides matches the 0.382 Fibonacci retracement level connected DOGE’s play chart, arsenic shown below.

DOGE/USDT play terms chart. Source: TradingView

The rebound prospects summation further spot arsenic DOGE rebounds from a enactment confluence comprising an ascending trendline and a 0.236 Fib line, reinforcing the thought that buyers are defending little levels, portion eyeing $0.26 arsenic the interim upside target.

Short compression tin assistance DOGE scope $0.26 target

Futures information shows a heavier attraction of abbreviated liquidations betwixt $0.215 and $0.27, portion agelong liquidation levels stay comparatively level beneath $0.18.

DOGE/USDT liquidation heatmap connected Binance. Source: CoinGlass

This imbalance suggests a little downside risk, with less leveraged longs positioned to trigger important merchantability pressure. Conversely, the upside has a dense liquidity partition of shorts waiting to beryllium squeezed.

Related: DOGE holders are buying dips: Is $1.60 by 2026 realistic?

Therefore, a breakout supra the $0.216 neckline could unleash a question of abbreviated liquidations, accelerating a determination toward $0.26 arsenic bearish traders are forced to bargain backmost into the rally.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.