Chart of the day - DOGECOIN (06.10.2021)

Rally on the cryptocurrency market looks to have taken a pause today. Bitcoin as well as major altcoins are moving slightly lower today, following recent steep gains. However, there is one coin that stands out today - DOGECOIN. Doge is trading over 5% higher on the day and is testing yesterday's highs near 0.2664. The coin experienced a big price jump yesterday after Elon Musk tweeted a picture of Shiba Inu - a dog breed that is the face of Dogecoin. However, some more fundamental news related to the cryptocurrency were released overnight and those may explain today's outperformance of Doge. Namely, Adam Aron, CEO of AMC Theaters (largest movie theatre chain in the United States), announced that his company will start accepting payments for gift cards in Dogecoins.

Taking a look at the DOGECOIN chart, we can see that the coin has jumped around 40% off lows reached at the end of September. The coin is retesting yesterday's daily highs above 0.2660 today. A point to note is that this area is marked not only with yesterday's highs but also with previous price reactions. A downward trendline can be found slightly above it. Pushing above these resistances may pave the way for an even bigger upward move. In such a scenario, the next resistance level to watch is marked with highs from early September in the 0.3150 area.

Source: xStation5

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Crypto

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