Dogecoin price appears to be the underdog of the top ten cryptos, with a rally seemingly brewing despite the mundane trading environment. Even with Bitcoin price lifting to $30,000 earlier this week, the anticipation of the US CPI data has seen it wobble below $29,000.
The majority of the top ten cryptos are facing declines of as much as 2.6% for XRP and 1.2% for BNB. In the meantime, up a mere 0.2% on Thursday, Dogecoin is trading at $0.07534 with $406 million in volume coming in and $10.65 billion in market capitalization.
Dogecoin Price Craves Bullish Breakout To $0.1
After sustaining a bullish outlook from the previous week’s retracement to $0.072—the confluence support created by the 50-day Exponential Moving Average (EMA) (red) and the 100-day EMA (blue), Dogecoin price holds marginally above the 200-day EMA (purple) at $0.07512.
Bulls are expected to double down their efforts of acquiring more of the meme coin, especially with the possibility of X (formerly Twitter) adopting DOGE to power payments on the microblogging platform.
The newly rebranded social media company, owned by billionaire Elon Musk, assured its users that it will “never launch” a native crypto token – a stand that has fueled speculation in the meme coin’s community that Dogecoin will be chosen to fulfill the expected payment needs.
Influencers like @CryptoKaleo have already expressed interest in receiving their earnings on X in Dogecoin, a factor that continues to hype the community. Such support for DOGE, a token that Musk openly loves, would imply a major bump in its mainstream adoption.
Pay me in Dogecoin.
Thank you @elonmusk pic.twitter.com/z4k1pp7YeR
— K A L E O (@CryptoKaleo) August 8, 2023
Dogecoin’s social dominance has recently started to recover with attributes to the growing buzz around the adoption on X. On-chain data on Santiment based on the social volume metric reveals points to the growth in the number of mentions on social channels.
The uptick in Dogecoin’s social volume commenced earlier this week as shown in the chart, implying that the token is falling behind other major cryptos. If this trend continues, Dogecoin price recovery to $0.1 may not be a daunting uphill task.
Will Dogecoin Recover With the Buzz?
Dogecoin is holding above $0.07512, the immediate support reinforced by the 200-day EMA. Below this is another confluence support, which is expected to come in handy, considering the sell signal from the Moving Average Convergence Divergence (MACD) indicator.
If the MACD line in blue fails to cross above the signal line in red and the momentum indicator slides into the negative region below the mean line (0.00), the odds will flip in favor of more declines to $0.07, without ruling out potentially damaging losses to $0.62.
Key chart events could mark the beginning of a significant uptrend, starting with the Relative Strength Index (RSI) rebound from the midline back to the overbought region above 80.
A subsequent break and hold above the descending dotted trendline would serve as confirmation for the uptrend to $0.1. Investors should anticipate profit-booking at this level, meaning they cannot lose sight of the resistance that will turn into support at $0.08.
In the event X actually adopts DOGE for payments, the hype around it could be tremendously massive and possibly trigger a rally to $0.15.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
