Dogecoin (DOGE) has seen a mild uptick in its price as investor optimism returns.
Analysts believe external events like the Bitcoin halving can help propel DOGE’s price.

Dogecoin (DOGE) is demonstrating signs of resilience as it has increased by approximately 4% overnight to trade at $0.158.

This move is notable for the meme coin as it coincides with recent market fluctuations which saw large cryptocurrencies falling dramatically during Tuesday’s trading session. Some of the digital assets that saw their price decline include Solana (SOL) which dropped 3.13% to $132, and Avalanche (AVAX), falling 2.29% to $34.08.

Dogecoin’s Peculiar Performance

Developed by software engineers Billy Markus and Jackson Palmer, Dogecoin was the first meme coin and a majority of the coins are held by long-term investors. According to the platform, one-third of DOGE holders have held the coin for at least a year.

As formerly reported by Crypto News Flash, Dogecoin holders are in the money despite the recent market downturn. IntoTheBlock reveals that 83% of the wallets holding Dogecoin are still profitable, with 3% at the money while 14% are out of money.

One notable factor responsible for DOGE’s 4% increase is a humorous post on X from Elon Musk. Following reports from Crypto News Flash, Musk humorously portrayed mainstream media as Roman soldiers struggling to cover Dogecoin’s rise within the top ten cryptocurrencies by market cap, referencing Monty Python’s “Life of Brian.” 

Ranked 8th with a market cap of $22.6 billion, Dogecoin has spurred a fresh wave of meme coins, some of which are beginning to challenge it. Chief among Dogecoin’s competitors is Shiba Inu (SHIB) with a market cap of $13.2 billion. The 12th-ranked cryptocurrency is committed to innovating, growing, and developing to become the leading meme coin in the market and to challenge top projects such as Ethereum (ETH), Cardano (ADA), and Solana.

Based on technical analysis, DOGE’s price at $0.158 has twice found support at a key level, and a hammer candle pattern on the chart suggests a potential reversal. This hammer pattern, with its long wick, indicates sellers may be losing momentum and buyers are accumulating the cryptocurrency. 

Adding to this bullish sentiment, a technical indicator called the Relative Strength Index (RSI) is holding above a key level, similar to a past buying opportunity. If this RSI strength continues, Dogecoin could climb 15%, potentially reaching the $0.19 mark.

Future Outlook for DOGE

Despite its impressive performance, crypto analysts believe DOGE’s journey is far from over. Analysts forecast that a breakout from the current consolidation phase could occur within the coming weeks. Specifically, Trader Tardigrade forecasted the value of Dogecoin to reach as high as $0.4 in the short term.

However, some analysts anticipate minor fluctuations in Dogecoin’s price fueled by external factors such as the upcoming Bitcoin halving event. The average price projection for Dogecoin in April is $0.181, with trade predicted to vary between $0.166 and $0.196.

 

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Filed under: Bitcoin - @ April 17, 2024 4:24 pm