Dogecoin (DOGE) has weakened by approximately 20% since April 18, falling from a high of $0.095 to a low of $0.076.Bitcoin has dropped again below $28,000, while Ethereum, the second-largest crypto by market value, has also experienced a significant price drop.
The current Dogecoin (DOGE) price stands at $0.079, which is more than 60% off from its 2022 highs registered in January. But where is the price of Dogecoin (DOGE) going next, and what can we expect from the rest of the second quarter of 2023?
Today, Crypto Lists will discuss Dogecoin (DOGE) price estimates from a technical and fundamental analysis perspective.
Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Twitter’s next official payment token?
- 2 Whales are reducing their trading activity
- 3 Technical analysis for Dogecoin (DOGE)
- 4 Important support & resistance levels for Dogecoin (DOGE)
- 5 What speaks for the rise in the Dogecoin (DOGE) price?
- 6 What indicates further downfall for Dogecoin (DOGE)?
- 7 What do analysts and experts say?
Twitter’s next official payment token?
Dogecoin was launched in December 2013 by programmer Billy Markus and marketer Jackson Palmer who created the coin as sort of a joke based on the Doge meme. Dogecoin, unlike cryptocurrencies like Bitcoin, was designed to be abundant and circulate, while some analysts said that DOGE might be less attractive as an investment because it has a limitless supply.
Despite this, DOGE’s value has moved up over time, and it is important to say that Dogecoin’s biggest selling point continues to be its robust community of enthusiastic fans. Elon Musk continues to support Dogecoin, and the adoption of DOGE may grow if it’s integrated into new products and services of Elon Musk’s companies.
Investors in Dogecoin still hope that DOGE could become Twitter’s official payment token. The positive information is that Elon Musk recently replaced the platform’s iconic bluebird logo with the Dogecoin official mascot from the Shiba Inu meme, which is certainly a positive sign.
Dogecoin price skyrocketed in April 2021 primarily due to Elon Musk’s vocal support, but Elon also said then that the only thing hindering this coin from becoming the “official currency of the internet” is its high concentration level among a few rich people.
Since May 2021, the price of DOGE entered a prolonged long bearish cycle, furthered by the prospects of the Fed tightening and the collapse of multiple leading crypto firms (FTX, Terra (LUNA), Three Arrow Capital..). The last several days have been negative for the cryptocurrency market, and DOGE also remains under pressure after the crypto exchange Coinbase indicated that it might leave the U.S. market soon.
Coinbase has secured a license to operate in Bermuda, and according to a report from Fortune, Coinbase is planning on using its freshly-acquired license to launch a crypto derivatives platform—possibly as soon as next week.
However, there are fears among investors that the company’s exit from the U.S. market could mean that a lot of U.S. traders will leave the market as well, which could lead to a significant shrink in the global cryptocurrency market.
Whales are reducing their trading activity
Since the recent high on April 4, there has been a significant drop off in the number of whale transactions on the Dogecoin network, and according to the blockchain data firm Santiment, daily large transactions involving DOGE have declined from 1062 on April 4 below 280 transactions at the close of April 18.
When whales reduce their trading activity (transactions worth $100,000 and above), it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects. If the whales continue to reallocate funds to other investments, the price of DOGE could take an even bigger hit in the upcoming weeks.
Another negative information is that between March 27 and April 19, the Miners sold off 210 million DOGE worth approximately $19.1 million. When miners sell off their block rewards, it increases the supply of the cryptocurrency in circulation, and it is another critical factor indicating an impending bearish price trend for DOGE.
In light of this, Dogecoin (DOGE) might have a hard time holding above the current price levels. Market participants should also keep in mind that the price of DOGE is in correlation with Bitcoin, and if the price of Bitcoin drops again below the $25000 price level, that would certainly have a negative influence on the price of DOGE.
Technical analysis for Dogecoin (DOGE)
Dogecoin (DOGE) has weakened from $0.095 to $0.076 since April 18, 2023, and the current price stands at $0.079. Traders should consider that the risk of further decline is still not over, and DOGE might have a hard time holding above the $0.075 level in the upcoming days. A break below this level would indicate that DOGE could probably test the price level at $0.070.
Important support & resistance levels for Dogecoin (DOGE)
On this chart (the period from July 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Dogecoin (DOGE) remains under pressure, but if the price advances above the first resistance that stands at $0.090, the next target could be resistance at $0.10.
The current support level is $0.070, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.065. If the price drops below $0.060, which represents an important support level, the next target could be located around $0.050 or even below.
What speaks for the rise in the Dogecoin (DOGE) price?
The second quarter of 2023 will likely be a tough period for DOGE, and the outlook for risk appetite in the near term is not looking good. The crypto market sentiment is dented again, and for now, everything indicates that we could see new lows for Dogecoin (DOGE) in the weeks ahead.
However, if the price of DOGE advances above $0.090, the next target could be resistance at $0.10. Fundamentals of Dogecoin (DOGE) are strongly tied to the overall cryptocurrency market (especially with Bitcoin), and if the price of Bitcoin jumps above the $30000 resistance again, we could see DOGE at higher price levels.
Investors in Dogecoin still hope that DOGE could become Twitter’s official payment token, and the value of DOGE may also grow if it’s integrated into new products and services of Elon Musk’s companies.
What indicates further downfall for Dogecoin (DOGE)?
The cryptocurrency market remains under pressure after the crypto exchange Coinbase said that it might leave the U.S. market soon, and the price of DOGE is also losing value amid a decline in interest in the market and a worsening macroeconomic environment.
Since the recent high on April 4, there has been a significant drop off in the number of whale transactions on the Dogecoin network, and when whales reduce their trading activity, it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects.
What do analysts and experts say?
Dogecoin (DOGE) remains under pressure after the crypto exchange Coinbase indicated that it might leave the U.S. market, while some analysts said that failed test of launching SpaceX’s Starship rocket added further pressure.
The SpaceX rocket, which featured the Dogecoin mascot on its side, disintegrated four minutes after its launch. According to the blockchain data firm Santiment, daily large transactions involving DOGE have declined from 1062 on April 4 to below 280 transactions at the close of April 18, and the upside potential for DOGE probably remains limited for the rest of the second quarter.
Investors should keep in mind that the macroeconomic landscape remains uncertain; major central banks continue aggressively fighting inflation by raising interest rates, and risk-on assets such as cryptocurrencies could suffer even more in such conditions.
The U.S. central bank is widely seen raising rates by 25 basis points to the 5.00%-5.25% range next month, and analysts are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. Bridgewater Associates founder and billionaire Ray Dalio believes that financial markets will be in a poor state for the next five years, and according to Dalio, the same rule will most likely apply to the cryptocurrency market.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.