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Dogecoin has been in consolidation mode
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The cryptocurrency trades near a key resistance
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The meme token is a buy on potential breakout
If you have been looking to buy Dogecoin (DOGE/USD), get ready! The selling post-FTX collapse could be overdone as buyers have defended a drop at a key level for more than two weeks. However, it is not an outright buy, as further confirmations are needed.
The general crypto mood has been responsible for DOGE’s weakness. However, the meme token has also been hit by the lack of positive developments around the acquisition of Twitter by Elon Musk. Since the acquisition occurred, there have been little to no hints from the DOGE father on the use of the token as payment.
David Gokhshtein of Gokhshtein Media has shared thoughts that could interest the Doge community. Gokhshtein says he expects the Ethereum founder to team with Musk to work on a crucial upgrade of Dogecoin. The views come when Vitalik Buterin, Ethereum founder, has been commenting about the original Dogecoin. Buterin has suggested that the blockchain should shift to the Proof-of-Stake consensus. The Ethereum code will be used in the transition if it occurs.
On his part, Musk, in May, made attempts to improve the transaction system of DOGE. With the acquisition of Twitter, it could rekindle discussions around the upgrade if DOGE is to be accepted as payment.
DOGE trades near the resistance of $0.09
The daily chart shows DOGE pushing for a breakout at the $0.09 resistance. The cryptocurrency has made an intraday gain of 10%, indicating that buyers are active at the crucial level. A breakout is on the horizon.
The MACD indicator is bearish, but the weakness has abated. The RSI has moved above the neutral zone, indicating the entry of buyers.
What next for DOGE?
A breakout beckons for Dogecoin price at $0.09 if the daily candlestick closes above the level. A breakout would welcome a bullish momentum, with the next level at $0.14. Investors should watch how the price action plays out and buy on a breakout.