Dogecoin Price Prediction as $650 Million Trading Volume Comes In – Can DOGE Recover to $0.10 Soon?

Press Release The largest and most popular meme coin, DOGE, is back in the spotlight after its most significant fan, Elon Musk revealed he would transition from crypto to artificial intelligence (AI). Dogecoin price dropped this week in tandem with the rest of the crypto market amid regulatory pressure and the ‘ghosts’ of the messy implosion of Sam Bankman-Fried’s FTX exchange.

Dissecting Dogecoin Price Short-Term Technical PictureDOGE started giving back gains accrued in January at the beginning of February when the Federal Reserve rained down on the aggressive bullish party by hiking interest rates by 25 basis points.

At the time, investors believed a 0.25% increase in interest rates was good for risky asset classes. However, Jerome Powell’s deflationary remarks quickly became less impactive as more data like the Consumer Price Index (CPI) the Non-farm payrolls, and the unemployment report indicated inflation would be a dominant issue over the coming months.

As the crypto market bleeds, including DOGE’s 5.4% dip in seven days investors are looking forward to key economic data releases for March, culminating with the much-awaited FOMC meeting toward the end of the month.

That said, investors, especially retail investors are likely going to retreat to the sidelines until they can ascertain where the crypto market and more specifically Dogecoin price is heading.

Note that the loss of support at $0.08 implies chances of overhead pressure surging this weekend are high. Therefore, all eyes are glued on tentative support areas at $0.074 and $0.07, respectively.

Dogecoin price would remain in the good graces of the bulls as long as its leg does not stretch further than $0.07. Otherwise, investors would begin to acclimatize to declines sweeping through lower key levels at $0.06 and $0.05, respectively.

DOGE/USD daily chartTwo points of control are coming up strongly to guide the direction Dogecoin price could take in this first quarter. These are the psychological resistance at $0.10 and the above-mentioned critical support at $0.07.

Declines would become apparent if Dogecoin price slides below $0.07. From here, investors could anticipate a sweep down to $0.06 and worse off to $0.055. On the upside, a break above the coveted seller congestion area at $0.10 could be DOGE’s ultimate catalyst for gains back to $0.0159 – highs reached after Elon Musk acquired Twitter in October 2022.

Investors should be aware of the massive outflow volume from 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 in and out of the asset’s markets.

A consistent downward slope as illustrated on the chart reinforces the bearish grip on Dogecoin price. Therefore, it could be pointless to expect a big rebound this week, especially not in the upcoming few sessions.

Why Dogecoin Price Support At $0.074 Is SolidDespite the dilapidated technical outlook, Dogecoin price stability at $0.074 could greatly be attributed to investors’ strong conviction the meme coin will turn things around. The IOMAP model by IntoTheBlock shines a light on roughly 35.45k addresses that purchased 34.23 billion DOGE between $0.0738 and $0.0758.  » …

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Melvin Akins

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