Dogecoin Price Outlook: Here’s What to Expect

Dogecoin price has been under intense pressure for the past few weeks, lagging in growth compared to other meme coins. At the time of writing, the meme coin was trading 4% higher at $0.06593, erasing some of the losses incurred this week. The asset’s total market cap has increased by nearly 5% over the last day to $9.5 billion, with the total volume of DOGE traded jumping by more than 6%.

What Next?

Dogecoin price has been struggling to recover from this month’s losses amid improved crypto market sentiment. Bitcoin’s breach of the $30,000 level has seen most cryptocurrencies rally over the past week. The global cryptocurrency market cap has jumped to $1.2 trillion, while the total crypto market volume increased by 38% over the past 24 hours.

Compared to Shiba Inu, Dogecoin has been the worst performer so far this year. Dogecoin, Elon Musk’s favorite coin, has seen its sentiment dwindle over the past few weeks as investors enter conservation mode. Elon’s influence on the meme coin also seems to be fading off, especially since Twitter’s takeover by new CEO Linda Yaccarino.

Recently, Elon Musk warned his Twitter followers saying that they should not “bet the farm” on the premier meme coin. Comments from Elon Musk about Dogecoin have always been referred to as an endorsement, characterized by the massive price gains that always follow any form of a tweet about the digital asset. As such, the recent caution shared by the former Twitter CEO has forced most investors into conservation mode around the meme coin.

Dogecoin has the largest market cap among the meme coins but is also one of the most volatile digital currencies at the moment. DOGE is down by more than 9% in the past month and 6.49% in the year to date. The coin still remains 5.61% lower compared to a year ago, indicating that it still has a long way to go to recover.

Dogecoin Price Outlook

The daily chart shows that the Dogecoin price has been on a bearish trajectory for the past few weeks, despite the recovery in the global cryptocurrency market. The meme coin has failed to move above the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages.

Even so, its Relative Strength Index (RSI) has moved above the signal line to 49, just below the neutral zone. The Moving Average Convergence Divergence (MACD) indicator, as the Momentum indicator, is hinting at a bullish breakout.

Therefore, the Dogecoin price is likely to experience a price reversal in the near term, characterized by a slow but bullish trajectory. A move past the 50-day EMA at $0.06850 will give bulls enough momentum to push the price higher. However, a move below the critical support level of $0.06 will invalidate the bullish thesis.

DOGE Price Chart