The biggest and most popular meme coin, DOGE, is back in the limelight after its most important fan, Elon Musk, revealed that he will be transitioning from crypto to artificial intelligence (AI). Dogecoin price fell this week along with the rest of the crypto market amid regulatory pressure and the ‘ghost’ of Sam Bankman-Fried’s messy implosion of the FTX exchange.
Dissecting Dogecoin price short term technical picture
DOGE began giving back gains made in January in early February when the Federal Reserve rained on the aggressive bullish party by raising interest rates by 25 basis points.
At the time, investors believed that a 0.25% increase in interest rates was good for riskier asset classes. However, Jerome Powell’s deflationary remarks became increasingly less effective as more data such as the Consumer Price Index (CPI) non-farm payrolls and unemployment reports indicated that inflation would be a major issue in the coming months.
As the crypto market is bleeding, including DOGE lost 5.4% in seven days Investors await the release of key economic data for March, which will culminate with the highly anticipated FOMC meeting at the end of the month.
That said, investors, especially retail investors, are likely to hold back until they can figure out where the crypto market and more specifically the price of Dogecoin is going.
Note that the loss of support at $0.08 means that the upside pressure is more likely to increase later this week. Therefore, all eyes are set on the temporary support areas at $0.074 and $0.07 respectively.
As long as it does not gain a leg above $0.07, the dogecoin price will remain in good grip of the bulls. Otherwise, investors would start accepting a decline through the lower key levels of $0.06 and $0.05 respectively.
Two points of control are emerging strongly to guide the direction in which the Dogecoin price could take this first quarter. These are the psychological resistance at $0.10 and the above mentioned key support at $0.07.
If Dogecoin price breaks below $0.07 then the downside will become evident. From here, investors can expect a drop towards $0.06 and a downside break towards $0.055. On the upside, a break above the coveted seller congestion zone at $0.10 could be DOGE’s final catalyst for gains back to $0.0159 – the high reached after Elon Musk acquired Twitter in October 2022.
Investors should be aware of the massive outflow volume from the DOGE markets as shown by the Money Flow Index (MFI) indicator on the daily chart. Although this index overlays the chart like the RSI, it considers the flow of volume into and out of asset markets.
As shown in the chart, the continuous downward slope strengthens the bearish grip on the price of Dogecoin. Therefore, it might be futile to expect a big rally this week, especially not in the coming few sessions.
Why Dogecoin Price Support Is Solid at $0.074
Despite the dilapidated technical approach, dogecoin price The stability at $0.074 can be attributed to the firm belief of investors that meme coin will turn things around. IntoTheBlock’s IOMAP model highlights roughly 35.45k addresses that bought 34.23 billion DOGE between $0.0738 and $0.0758.
Investors in that cohort are poised to keep the Dogecoin price profitable as the crypto market grapples with massive upside pressure due to increased regulatory oversight of the industry from the United States.
With a slight push, Dogecoin price could reclaim the $0.08 position to capitalize on the liquidity between $0.07 and $0.074 and possibly launch another assault on the seller congestion zone at $0.10.
Elon Musk jumps ship from crypto to AI
Twitter CEO Elon Musk has long proved his genuine interest and love for crypto. Dogecoin was the first project to attract attention from the billionaire, given the extent to which his tweets affected the price of not only DOGE but other related dog-themed meme coins.
Musk now owns Dogecoin, bitcoin (btc), and Ethereum (ETH). For a while, Tesla, the largest manufacturer of electric vehicles, accepted bitcoin as a payment method, however, the largest cryptocurrency was dropped due to its tendency to grab electric energy – which is believed to contribute to global warming. Is.
Fast track to 2023 where AI is making headlines with major tech giants like Microsoft, Google and Meta being at the forefront of the wave, Musk believes he “used to be in crypto, but now I’m in AI”. interested in.”
The tweet generated interest across the board, with some asking Binance “Why not both?” Others chimed in, saying that there is a future where Musk could put together his love for Dogecoin and his newfound interest in AI.
Musk has been one of the critics of ChapGPT, an AI-powered search tool from OpenAI. ChatGPT blew up late last year, attracting the attention of Microsoft, which is reported to have invested $10 billion in OpenAI.
However, Elon Musk warned of the risk of waking up AI but training it to lie. In other words, he was referring to the tendency to receive false information from ChatGPT. Musk announced his interest in AI a week after he warned investors during a Tesla event – people should be careful with the technology.
But don’t take it the wrong way, what Elon Musk is saying is that people should be careful with the information they give to AI software tools. In fact, the billionaire recently said he was considering starting an AI company to ethically rival OpenAI.
dogecoin options to buy
If you are looking for other high-potential crypto projects alongside DOGE, we have reviewed the Top 15 Cryptocurrencies for 2023, as analyzed. crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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