Dogecoin (DOGE) has shown resolve around the $0.06 support level from where investors are optimistic could lead to a turn of tides for the memecoin.
DOGE investors are confident that the altcoin is poised to bounce off this mark for the fifth time similarly to the last four times.

Dogecoin (DOGE) investors are cautiously optimistic about the next price move based on the memecoins historic pattern. In the last couple of months, DOGE has shown resilience around $0.06, a critical support that has been tested several times in the last couple of weeks. Specifically, in the last four times, a test of this support has subsequently been followed by a strong bounce back.

Viewed as a sanctuary position, the altcoin is at the time of press exchanging for $0.061872. The fifth time the digital asset is testing this level, market experts foresee a rebound possibly climbing above its 30-day high of $0.066. Further down the road, investors are looking to breach the one-year high which is a little over the $0.1 price level reached at the start of November 2022.

A dip under the current $0.061 is a psychological threshold that possibly triggers buying orders that fuel an inevitable bounce. Now on the fifth try, investors hope that there is a sense of reliability for short-term gains. Further supporting this narrative, Bitcoin (BTC) market dominance has dropped to 47 percent and Ethereum’s (ETH) uptick against BTC suggests that investors are beginning to look beyond BTC. If the trend persists, it could usher in the altseason with DOGE expected to be one of the top performers.

Dogecoin (DOGE) Long-term Outlook

DOGE set its all-time high nearly two years ago after topping $0.73. The performance was fueled by great adoption, positive comments from the world’s richest person Elon Musk who has been an advocate of the cryptocurrency, and the general positive market sentiment led by Bitcoin (BTC) which at the time marked a new all-time high of nearly $70,000.

A memecoin, DOGE faces a long road to reach its set all-time high. As opposed to utility tokens, DOGE lacks a practical and sustainable purpose that can accelerate its development or adoption. DOGE depends on speculation and excitement around the token, adoption, and wider market sentiments. Analytics platform Santiment recently highlighted a record-low trade interest, signaling a bearish outlook on the digital asset.

As #altcoins have seen more declines than gains since the mid-July #crypto market local top, #memecoins are showing a smaller ratio of overall trader interest than they have in some time. Particularly, $DOGE has the lowest discussion rate since 2020. https://t.co/QO5Cbuf2G2 pic.twitter.com/aC5NaHyGGb

— Santiment (@santimentfeed) September 27, 2023

Furthermore, with the market stuck in a two-year bear market, DOGE faces tough times after its biggest advocate Elon Musk in recent months shying away from shilling the project. This is possibly due to the ongoing case against him. A section of DOGE investors accuse Musk of manipulating DOGE prices.

Read More: Elon Musk Seeks Dismissal of Dogecoin Lawsuit – Does This Support or Hurt DOGE?

On the other hand, there is speculation that DOGE could become the native token of X (formerly Twitter) as Elon Musk builds his envisioned ‘everything app.’ This could be a major step in the mass adoption of the digital asset and could drive DOGE to a new all-time high.

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Filed under: Bitcoin - @ September 30, 2023 8:33 am