- Declining social media sentiments might have a bearish effect on Dogecoin price
- DOGE falls below 20-day EMA
Dogecoin Price Prediction: General price overview
Despite a crashing cryptocurrency market, Dogecoin(DOGE) has been trading along a strong uptrend since last week. Social media sentiments especially on Twitter sent the coin flying by 20% following a comment by Tesla CEO that he would continue holding his doge. There is a high correlation between DOGE price and social media mentions. Take for instance the following chart from Bitsanalytics.
The price is declining proportionately with declining social media mentions. However, the falling graphs indicate a bearish trendline. But supporters of the meme coin are betting on Tesla’s implementing the coin as its payment option following the oust of Bitcoin. A situation that’s likely to spike the price of DOGE to the $1 level.
Dogecoin witnessed a pullback on the daily chart that saw it hover below the 20-day Exponential Moving Average ($0.46). The bulls are expecting a reversal to beat the $0.46 price level and target levels above $0.59. However, the coin might need to amass large buyer-pressure to encounter stiff selling pressure at this price point.
At the time of writing, the memecoin is still struggling with resistance at $0.40 and is currently trading at $0.39. There are chances of a break out above the 20-EMA. But if this doesnt take place, the coin risks sinking to the crucial support at $0.35. A trend reversal is likely to create a pair range-bound from $0.35 to $0.59 in the coming days.
Dogecoin price movement in the past 24-hours
Dogecoin rose to an intraday high of $0.4112 before correcting downwards and breaking the middle resistance line at $0.409. Presently the coin is attempting to break above the line once again and target the second and third major resistance at $0.45 and $0.46. Failure to sustain a trend above the middle resistance line will attract selling pressure and cause the coin to decline below $0.30 and $0.27.
Another theoretical assumption also exists. In case the bulls sustain the price action to $0.59 , there are high chances of beating the all time high and setting a new target above $0.73. The new target might be anywhere between the upper-ranges of $0.75 and $1.
Dogecoin 4-hour price chart
Dogecoin seems to be picking momentum on the 4-hour price chart. Yet resistance at $0.40 appears to have held the bulls hostage at $0.39. Their seems to be high demand for support from the broader crypto market to push the coin above this price point and aim for other supports.
Following an endorsement of DOGE by Tesla Founder Elon Musk , the US Securities and Exchange Commission warned against investing on securities based on recommendations from popular names. The entire crypto market is currently taking cautious positions following Bitcoin’s crash to $40K. Therefore there is need for traders to remain cautious and invest on currencies based on their inherent value.