Elon Musk’s recent tweet may give Dogecoin the nudge it needs.
The difference in market capitalization between Dogecoin and rising star Cardano is now a mere $200 million.

Referring back to our previous update on the cryptic comment by Twitter CEO Elon Musk about Dogecoin, everyone’s curious to know: will this be the push that sees DOGE touch the $0.10 mark?

Dogecoin’s Silent Struggle

Although enthusiasts had hoped for Dogecoin to make significant moves following Musk’s tweet, it’s been rather quiet, with the price still lingering in the red zone. Lately, Dogecoin has faced competition from Cardano, another crypto, which is inching closer in terms of market capitalization – currently just $200 million shy of Dogecoin’s value.

Key Developments in Dogecoin’s Trajectory

Interestingly, in the last 72 hours, there’s been a shift in the Dogecoin market. After hitting a critical support level at $0.0722, the coin’s value has shown resilience. With the 200-day Exponential Moving Average (EMA) now acting as a support line for Dogecoin, there’s a tangible chance for it to breach the $0.0822 resistance level – a barrier that’s been unyielding for four months.

Surge in Dogecoin Traders

For this ascent to materialize, a significant group within the Dogecoin community needs to play their cards right. Recent statistics indicate a whopping 191% increase in Dogecoin traders (those who’ve held DOGE for less than a month) over the past 30 days. The number of these traders rose from 56K to an impressive 164K.

With 77% of these active addresses operating within +/- 10% of the current market price, it’s evident that these traders are incredibly active, either moving their DOGE to counteract losses or seeking profit avenues.

A Glimmer of Hope from Technical Indicators

From a technical analysis perspective, there’s potential for a positive shift. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) – crucial tools for traders – suggest a potential bullish momentum for Dogecoin. However, for this optimistic projection to manifest, the recently active investors must maintain some stability in their actions.

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Filed under: Bitcoin - @ August 12, 2023 10:08 am