Dogecoin(DOGE) is one of the top cryptocurrencies on the market and is ranked the 10th largest by market capitalization.
Following its endorsement by billionaire Elon Musk, Dogecoin has enjoyed explosive success and similar price growth, especially in 2021, when the cryptocurrency rose more than 1100% within 8 months.
Dogecoin has declined in popularity, price, and market capitalization ever since. However, it is still ranked the tenth largest by market cap and is miles ahead of other memecoins of its kind.
Dogecoin is considered a special kind of altcoin called a memecoin. It was released in December 2013 and was created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a "joke".
Billy Markus and Jackson Palmer's creation was originally intended as a mockery of the wild hype around the relatively new concept of cryptocurrencies at the time.
Dogecoin features the face of a Japanese Shiba Inu Dog as its logo and is built using the code on LuckyCoin, which was derived from Litecoin.
This "Litecoin" aspect of Dogecoin was changed in March 2014. The cryptocurrency now uses Litecoin's "Scrypt" technology and is a "proof of work" coin.
Dogecoin is considered an "inflationary" cryptocurrency because there is no hard cap on the number of coins that can be mined.
In contrast, cryptocurrencies like Bitcoin are considered "deflationary" because they have a supply cap, and every four years, the supply of Bitcoin released to miners is halved.
But in mid-2019, the Dogecoin community celebrated when the crypto exchange, Binance listed Dogecoin among its offerings. Also, in 2021, entrepreneur Elon Musk began to endorse Dogecoin.
Also, in October 2021, AMC, the cinema entertainment chain, announced that it would accept Dogecoin as a payment method for digital gift card purchases. This announcement further pushed the utility and, therefore, the popularity and price of the dog-themed cryptocurrency.
As of October 2022, Dogecoin is ranked the 10th largest cryptocurrency by market cap, with a market capitalization of 7.87 billion dollars.
Following Ethereum's exit from the Proof of Work cryptocurrency rankings, Dogecoin has become the world's second-largest proof of work blockchain after Bitcoin.
In late April 2022, the entire crypto market experienced a brief spurt of bullish action following the news of Elon Musk agreeing to buy Twitter for $44 billion.
Soon after Bitcoin dropped to an intra-day low of about $38,210, it rose 5.7% to a high of $40,300 as the news of the twitter-buy hit the internet.
Dogecoin pumped by 25% alongside Bitcoin, from a low of $0.136 to a high of $0.17 in 24 hours. However, the Twitter deal was called off soon after, leading to a dump in the cryptocurrency's price.
In October 2022, news hit the internet again about Musk agreeing to buy the social media giant for the original $44 billion deal.
As expected, the price of Dogecoin soared 8% from $.057 to $0.0648 overnight, according to CoinGecko.
At the time of writing, Dogecoin is worth $0.059 and has a market cap of 7.86 billion dollars, according to data from CoinMarketCap.
Zooming in on what is happening on the daily chart, it is clear that the bulls have been unable to push the price of Dogecoin over its 20, 50, and 100-period moving averages.
DOGE lacks sufficient intra-day volatility to push its price above or below the range between the $0.064 resistance and the $0.059 support.
The bears appear to have the upper hand despite the low volatility, as the chart of DOGE shows. However, if the bears push the cryptocurrency price below the $0.055 support, DOGE may plunge to its June lows around the $0.55 zone.
This means the bulls will have to defend the support around the $0.55 zone with all they've got because a drop below this level may be devastating.
DOGE may rise and close above the $0.06 zone in the coming weeks. The bulls on DOGE may attempt to push the price to the $0.09 zone before the year runs out.
If new bullish pressure enters the market, DOGE is bound to be one of the top performers.
If DOGE fails to close for the year at the $0.09 zone, it will likely happen around the first half of 2023 as more stability enters the market.
Dogecoin has relatively cheap transaction fees and comparatively faster transaction speeds. These qualities make DOGE one of the strongest assets in 2023 in anticipation of the next crypto market cycle.
Dogecoin is expected to surpass the $0.1 mark before the end of next year.
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