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Dogecoin (DOGE) has lost its bark and its bite…Now what?

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If you have been keeping an eye on DOGE performance for the last few days then you may have noticed that Dogecoin’s price has been relatively inactive. It seems to have lost its bark and its bite in the last few days with its price hovering around the $0.20 price level.

While the recent bullish sentiments in the cryptocurrency market fueled a substantial price recovery for many of the top cryptocurrencies, the same cannot be said for DOGE. It has so far maintained a bearish performance ever since peaking at $0.73 in May. It recently bottomed out at $0.15 on July 20 but has only recovered to $0.20 at the time of this press, which is the price level at which it has been hovering for the last few days.Dogecoin DOGE USDT

Source: Binance

Reasons behind Dogecoin’s current performance

Dogecoin’s relatively stable price is unusual considering that it was one of the most volatile cryptocurrencies just a few months ago. However, its performance reflects its declining buying and selling volumes, which was also probably why it failed to achieve more significant gains during the recent crypto market recovery. However, we must explore the forces behind its previous gains and price drops to fully understand the weak price action.

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The rise of Dogecoin was a culmination of its memecoin status but more importantly, the fact that it found favor with retail traders who had just exited their positions in Gamestop and were looking for the next rally opportunity. A lot of money was poured into Dogecoin earlier this year, fueling its parabolic run. DOGE also secured the backing of Tesla CEO Elon Musk and the culmination of these factors acted as a powerful catalyst that drove up its value.

Dogecoin’s popularity also meant that it was highly susceptible to FUD and this was reflected by its sharp price drops whenever some negative remarks were made about it, especially by the Dogefather.  There have recently been no catalysts that are enough to bring some excitement into Dogecoin trading. Its market cap also dropped from above $30 billion to its current level at $26 billion, indicating that most of the retail traders have exited and those who hold the cryptocurrency are hodlers or sitting in losing positions that they are hoping to ride out till the price recovers.

Will Dogecoin return to higher price levels?

Dogecoin will likely test previous highs if it experiences another influx of retail investors, and this will likely happen during the next major crypto bull run. The chances of organic growth are very minimal given that the cryptocurrency does not have any special use cases outside speculation. However, it might gain some attention if it secures more retail adoption. Fortunately, this seems to be shaping up albeit slowly.

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Oscar Mayer, a brand that sells food products recently auctioned a pack of Hot Doge Wieners complete with the Dogecoin branding as part of a limited edition offering. Each pack costs 10,000 Dogecoins which is equivalent to $2,000 at its current price. This is not the first branding of its kind to support Dogecoin. Famous body spray brand, AXE, previously made limited edition Dogecans as part of a marketing campaign.  Such campaigns may pave the way for more Dogecoin adoption and acceptance as a form of payment by more retail outlets. Such developments would put Dogecoin back on the path to its former glory.

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Dogecoin Price Struggling Near Vital DMA Lines, With Average Volume Activity.

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  • Dogecoin price is currently trading near its major moving averages of 20, 50, 100, and 200-day lines, with slightly lower volume activity. 
  • The digital asset is presently trying to suppress its vital DMA lines and holding its 100 and 200-day lines. 
  • The pair of DOGE/BTC is trading at 0.000003868 BTC with an intraday gain of +1.02%, and the ratio of DOGE/ETH is CMP at 0.0000595 ETH with a 24-hour change of -5.98%.
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Dogecoin price over the monthly chart is trying to sustain above its all vital moving averages of 20, 50, 100, and 200-day lines. Meanwhile, volume activity over the chart is slightly lower and needs to grow strongly. Similarly, the sustainability above its vital DMA lines with supportive volume activity will boost more upside in upcoming trading sessions.

Once the crypto asset jumps above its vital DMA lines, supportive volume activity will create the next lap of bullish move till $0.32 to $0.36. Support on the lower side is $0.2250 and $0.1945, whereas resistance on the higher side is $0.2720 and $0.3260. 

Dogecoin price is trading under the bullish chart pattern while creating higher highs and lows

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Dogecoin price at the weekly chart is trading under the bullish chart pattern while creating higher highs and lows. Meanwhile, the technical parameters are slightly neutral, with a slight recovery from lower levels. Volume over the chart slightly increases and needs more growth for a continuation of the pattern. DOGE price is trading at $0.2573 with an intraday gain of +2.34%, and the volume to market cap ratio is 0.06616.  

Relative Strength Index (BULLISH): Dogecoin price RSI is heading towards the overbought zone after a good recovery from the lower levels. In contrast, the coin trades on a higher note and projects slight caution with longs and RSI at 56. 

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Dogecoin Forecast and DOGE/USD Analysis October 21, 2021

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DOGE/USD are traded at 0.2554 and continue to move within the correction and the bullish channel. Moving averages indicate a short-term bullish trend for Dogecoin. Prices went up from the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of the rise from the current levels. At the moment, we should expect an attempt to develop a correction in the value of a digital asset and a test of the support level near the 0.2425 area. Where can we expect a rebound again and a continuation of the rise in the Dogecoin rate with a potential target above the level of 0.3155.

Dogecoin Forecast and DOGE/USD Analysis October 21, 2021

In favor of the growth of the DOGE/USD quotes, a test of the trend line on the relative strength index (RSI) will come out. The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the coin growth option will be a fall in the value of the asset and a breakdown of the 0.2175 area. This will indicate a breakdown of the support area and a continued fall in the cryptocurrency rate with a potential target below the level of 0.1845. With the breakdown of the resistance area and closing of quotations above the level of 0.2845, we should expect confirmation of the development of a bullish trend in Dogecoin.

Dogecoin Forecast and DOGE/USD Analysis October 21, 2021

Dogecoin Forecast and DOGE/USD Analysis October 21, 2021 therefore imply an attempt to correct and test the support area near the 0.2425 level. Where can we expect a rebound and continued growth in DOGE/USD to the area above the level of 0.3155. An additional signal in favor of raising Dogecoin will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option will be a fall and a breakdown of the 0.2175 area. This will indicate a continued decline in cryptocurrency with a target below the level of 0.1845.

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Three critical reasons why Dogecoin price will easily quadruple

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  • Dogecoin price is creating a massive fractal that hints at a 361% breakout move incoming soon.
  • DOGE has already breached a crucial resistance level, suggesting the start of a bull rally.
  • A breakdown of the $0.16 support floor will put the altcoin in jeopardy and on a path to invalidating the bullish thesis.

Dogecoin price might seem in a lull, as DOGE-killers like Shiba Inu and other meme coins are hogging the spotlight – nor has the dog-themed cryptocurrency’s own lacklustre performance helped its cause, but things are set to change as a multi-month consolidation now promises a stunning breakout.

Dogecoin price screams bullish every way you look at it

Dogecoin price shows three possible outcomes, all of which are bullish. The first sees DOGE slicing through the support area ranging from $0.213 to $0.230. This move, albeit bearish in the short-term, would lead to a retest of $0.195, where Dogecoin price can form a double bottom and kick-start a new uptrend to $0.30 or $0.352.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

The second outcome is for Dogecoin price to shatter the $0.195 support floor. This move would lead to a 35% drop from the current position, knocking the meme-themed cryptocurrency down to a stable support floor at $0.160.

While this might appear bearish, it would create a triple-top setup, aka bottom reversal pattern. This pattern would allow retail investors to purchase DOGE at a discount, pushing DOGE to retest the intermediate resistance levels at $0.424 or near the all-time high levels around $0.680. Either way, bottom reversal patterns are often seen in the cryptocurrency space and are one of the reasons why Bitcoin price kick-started its massive recovery rally after crashing to $28,000.

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DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

DOGE fractal forecasts an eye-popping rally

The third outcome is for Dogecoin price to form a fractal – a formation that often develops after an extended run-up.

From early July 2020 to early January 2021, DOGE formed a rounding bottom pattern, which led to a breakout and a 1,435% ascent.

This run-up pushed the Dogecoin price from $0.0057 to $0.088. After reaching a new all-time high in early 2021, the dog-themed cryptocurrency slid into consolidation for more than two months, creating a descending triangle.

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A breakout from this setup triggered another exponential leg-up that propelled the Dogecoin price by 1,102% to a new all-time high at $0.740. Since this new high, the meme coin has been coiling up, creating four lower highs and three equal lows.

Connecting these swing points using trend lines shows the formation of a descending triangle. This pattern forecasts a 363% ascent to $1.086, obtained by adding the distance between the first swing high and the horizontal support to the breakout point.

While the Dogecoin price has broken out of this setup, investors need to wait for a higher high above $0.36 to confirm the start of a new uptrend.

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Either way, this technical formation is hinting at the start of a new leg-up that will quadruple the market value of DOGE soon.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

While things are looking good for Dogecoin price in three possible outcomes, a breakdown of the $0.16 barrier could prove fatal for the altcoin. This move will knock DOGE down to $0.121, a breakdown of which will invalidate the bullish thesis and catalyze a 30% crash to the $0.09 support level.

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