Over the last week, DOGE rose past its previous lower high, which was $0.081, to reach $0.0835 before falling sharply to $0.0748. The resulting volatility affected both bulls and bears, and DOGE's rebound to the $0.08 resistance proves again, the importance of taking trades carefully.
Dogecoin, according to CoinMarketCap, has fallen by 4.6% over the last seven days at the time of writing and is now trading slightly below the $0.08 zone.
On the other hand, Dogecoin's price action over the last few days has demonstrated that buyers may outnumber sellers, indicating that possible upward momentum can be expected after the latest dip in the cryptocurrency.
In this article, we examine what has been going on with Dogecoin, and what to expect from the memecoin in the next few days/weeks.
Dogecoin's price spike at the beginning of April sparked a lot of discussion and speculative activity in the cryptocurrency community.
The price of Dogecoin grew by as much as 30% in the first week of April, to a value of around $0.1004 after Elon Musk replaced the Twitter logo, which had previously been the standard blue bird, with the Dogecoin logo.
The cryptocurrency increased further in value after a brief pullback, with the publicity that followed the launch of SpaceX's spaceship rocket somewhere in mid-April.
In general, the rise in Dogecoin's price in April 2023 marks an exciting period in the development of cryptocurrencies and highlights the increasing acceptance of digital assets in the larger financial sector.
The cryptocurrency finally went below the $0.08 support sometime this week and has been trying to get back above it again.
Overall, the price action of the memecoin has been range-bound for months now and is at a critical level at the time of writing.
It is currently hard to tell if Dogecoin will go up or down from here at this point. However, the RSI is a little bit below the neutral zone, indicating that the bears may have a slightly stronger grip on the steering wheel, and may take the opportunity to push the cryptocurrency's price lower into a retest of the $0.063 support.
However, the bulls still have a window of opportunity to push back against the bears and create a price rebound from this $0.08 support to the $0.1 – $0.11 zone again.
The Dogecoin bears will probably force a price reduction to $0.076 (50-day moving average) over the next few days, according to IntoTheBlock's Break-Even Price distribution statistics.
However, at the moment, support is expected to be very strong around this zone from the 164,000 addresses that recently purchased 13 billion DOGE tokens.
If the bulls are unable to keep the price above $0.076, Dogecoin's price will likely drop further toward its next resistance zone at $0.069 or lower.
However, the bulls still have a chance at righting their wrongs and pushing the price of the memecoin above $0.11 or higher again, if the $0.082 resistance is overcome soon.
A total of 151,605,154 DOGE were transferred in this transaction, which was valued at over $12.1 million at the time of the transfer.
For several reasons, the most recent blockchain transfer may be a positive sign.
First off, the fact that this much Dogecoin was transferred from an exchange shows that there might still be a lot of interest in and activity surrounding cryptocurrencies.
This activity may result in more trade volume and liquidity, which in turn may raise the currency's value.
Large transactions might also be a sign that powerful institutions or investors are entering the market, and other smaller players may be encouraged to get in on the action as a result.
The Dogecoin network's miners appear to be selling their block rewards in an interesting turn of events.
According to data from IntoTheBlock, 210 million DOGE has been sold from April 1 to April 25. At the time of writing, the total amount of coins sold off in April alone is now worth around $16.8 million at the current market price of $0.08.
This is a bearish signal and may mean that miners are less optimistic about the future of the cryptocurrency's price. As a result, they have decided to sell their DOGE rather than hold onto them.
In the same vein, on-chain data shows that whales in the Dogecoin ecosystem may now be bent on dumping their wallet holdings.
Data from Santiment shows over the past 20 days or so, a group of DOGE whales with holdings of 100 million coins or more had strategically offloaded 440 million coins, valued at almost $35.2 million.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.