Abstract： Dogecoin saw heavy selling pressure this week after losing this key technical support level, with traders fretting about the cryptocurrency's outlook amid apparent troubles at Twitter.
Dogecoin. Source: Adobe
Dogecoin (DOGE), the cryptocurrency that powers the dog MEME-inspired Dogecoin crypto payments blockchain, cratered on Thursday and price predictions have subsequently worsened. Having broken out of an uptrend that started in late-December 2022 earlier this week, things went from bad to worse FOR the internet‘s favorite meme coin on Thursday amid a broad crypto sell-off triggered by a MIX of Fed tightening FEAR induced downside and concerns about the SEC’s crackdown on US-based crypto staking services.
DOGE/USD has stabilized just above its 50-Day Simple Moving Average (SMA) NEAR the $0.08 level on Friday, down more than 10% on the week and close to 18% versus last Saturdays HIGHs at $0.10. The bears hit their short-term target of a test of the resistance-turned-support $0.079 level, meaning that some stabilization in the Dogecoin market is now likely, for a few days at least.
Price Prediction – Where Next for Dogecoin？
Dogecoins latest drop has reduced its gains on the year to under 20% and traders are once again questioning whether Dogecoin ever managed to truly break out of its bear market that begin in the second half of 2021 and lasted through most of 2022. The cryptocurrency is still up an impressive more than 60% from its 2021 lows under $0.05.
Hopes that serial entrepreneur and billionaire Elon Musk, who recently took over Twitter, might implement Dogecoin into a future payments system on the platform is keeping prices propped up versus the 2022 lows. But falling engagement on Twitter, which is evident in falling engagement on Elon Musks posts, has some analysts concerned that Twitter might not be the silver bullet to send Dogecoin back to all-TIME highs.
Musk is apparently groWING increasingly frustrated over falling Twitter engagement - ONE recent study reported that US usage is down 9% since Musk took over, with Democrats leaving the platform in droves amid Musks apparent right-wing political leanings. Musk has previously said that Twitter is on the fast track towards bankruptcy and unless things start to turn around for the social MEDIA platform, Dogecoin investors should be concerned.
In the near term, it thus feels that a retest of $0.079 support and perhaps a drop towards the 200-Day SMA at $0.077 seems more likely than a recovery back towards recent highs in the $0.10 area. If next weeks US CPI DATA comes in softer than expected, that could lift sentiment a little. But in the near future, Dogecoin is likely to remain restricted within its multi-month $0.07-$0.11ish range.
DOGE Alternatives to Consider
As discussed above, Dogecoins near-term outlook is patchy. Traders looking for QUICK gains may prefer to consider other high-potential tokens, such as those being sold in pre-sale by promising up-and-coming crypto projects. We've reviewed some of the BEST candidates in this list of the TOP 15 cryptocurrencies for 2023, as analyzed by the CryptoNEWs Industry TALK team.
The list is updated weekly with new altcoins and ICO projects.
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