After a somewhat bullish January 2023, the crypto markets are back to their bearish trend. This week has plenty of finance-related announcements, and speculators hedge their bets in advance. However, Dogecoin may escape that trend, as its support level is rather spectacular.
Most people still consider Dogecoin as a joke currency in 2023. That is a fair assessment, as its functionality remains relatively limited. However, it is possible to pay for goods and services with DOGE, even if in limited quantities. In addition, the general public still likes meme coins regardless of utility. One cannot forget Dogecoin still has the “backing” of Elon Musk, whose Tweets can send DOGE in either direction,
Research shared on Twitter shows there is a reason to be bullish on DOGE. The asset has seen strong demand near $0.086, as over 89,000 addresses scooped up a combined 14 billion DOGE. Although that is significant, it is roughly 10% of the circulating supply. Unlike Bitcoin or Litecoin, DOGE has no maximum supply. Users can mine and earn it indefinitely, making its $12.6 billion market cap even more impressive.
With such strong demand and support near $0.06, one must wonder what the future holds for DOGE. There is still strong resistance before $0.1, despite speculation and hopefuls buying vast amounts at $0.099. They acquired 8.25 billion DOGE to push the meme coin to $0.1. Unfortunately, that attempt failed spectacularly. It doesn’t mean the Dogecoin price can’t surpass that threshold, but it may take a while.
Fueling the current Dogecoin momentum are numerous Twitter-related rumors. The most persistent one is how Twitter will integrate native payments through cryptocurrency. The tech giant indeed filed the necessary paperwork to obtain approval for payment support through the platform.
However, it seems unlikely cryptocurrencies will play a role. Even then, adding Dogecoin would likely not be the priority. Currencies like Bitcoin and Ethereum are far more mainstream and recognized.
Despite the support from Elon Musk, DOGE payments may never happen on Twitter. So it makes sense to use Dogecoin for a tipping service but not for services like Twitter Blue. Nor will advertisers be keen on using the meme coin due to its overall price volatility.
Moreover, it seems DOGE has fallen victim to the broader bearish pressure affecting all crypto markets. As a result, the popular meme coin is on the cusp of dropping below $0.09 again. However, the indicators still flash “BUY” overall, with “Strong Buy” for moving averages and “neutral” for oscillators.
The coming days may offer some exciting price momentum. Reclaiming $0.095 would be a considerable feat, although a further price dip remains a more likely outcome.
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