Dogecoin (DOGE), the cryptocurrency that powers the Shiba Inu meme-inspired layer-1 Dogecoin blockchain, was trading about 1.5% higher this past Tuesday north of the $0.09 level. dog coin It is now down just 3% from Monday’s low of just under $0.09, with buyers seemingly flocking to support the coin as it retests its 21 and 100-day moving averages. In the near future price prediction Thus remain moderately upbeat.
The 21DMA has continued to provide good support in recent weeks, while dog coin There appears to be support from the uptrend channel which has been supporting the price action all the way till the end of December 2022. Tuesday’s surge comes despite a long-inactive Dogecoin wallet address containing 2,043,137 DOGE being activated for the first time. in 9.1 years.
2,043,137 DOGE is worth less than $190,000 at current prices. Compared to Dogecoin’s $457 million in trading volume according to Coinmarketcap over the past 24 hours, this is a drop in the ocean, so the markets have brushed off any concerns about these 2 million-plus tokens being dumped.
Where’s Next for Dogecoin (DOGE)?
The near-term direction of the cryptocurrency is likely to be determined by the upcoming speech by US Federal Reserve Chairman Jerome Powell at 1240EDT. The Fed last week hiked interest rates by 25 bps to a range of 4.50-4.75% and Powell’s post-meeting comments were interpreted evasively by the market. Thus, traders will be watching Powell’s comments on the outlook for future interest rate hikes in the hope that he could provide another boost to sentiment.
But last Friday’s strong US jobs and ISM Services PMI data eased concerns being felt at the Fed about a possible impending US recession, making a new dovish surprise from Powell less likely. Nevertheless, Dogecoin may continue grinding higher given its positive technical outlook – as mentioned above, the cryptocurrency has responded well to support in the form of the 21 and 100DMA plus the 2023 uptrend. A piece towards recent highs in the $0.10 area looks to be on the cards again.
However, if the bears take control once again, DOGE could break below the key support in the $0.09 area, which could open the door for a near-term decline, perhaps to the $0.078 resistance-turned-support. As low as the area where the 50DMA also resides. Dogecoin bulls will be hoping that optimism about possible integration into a future Twitter payment system will keep the cryptocurrency afloat for now. Twitter owner and CEO Elon Kasturi recently said He wants any future payment system to accommodate crypto.
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