The Dogecoin price appears to be in a very limited price range at the moment. Movements, if any are few and far between and the range is currently between the $0.24 and $0.25 level. The dizzy price heights of $0.70 reached just a few weeks ago seem a distant memory.
The Dogecoin price reached a high of $0.75 on 8 May but has been in steep decline since with a low of $0.177 reached on 21 June. There has been a slight recovery up to the $0.24 over the past two weeks but otherwise not much movement over the past days.
Effects on Dogecoin Price – Launch of BabyDoge
The recent announcement by Elon Musk on BabyDogecoin has sent strong ripples through the community. The smaller version of the coin has appreciated by over 100% with Musk’s tweet garnering the usual attention.
It does seem that the launch of Baby Dogecoin will have an effect on the Dogecoin price. There appears to be bearish pressure again on the price although support at $0.20 does seem to be strong.
Although Doge recovered considerably on June 22 with a jump of 23%, challenges to the price remain. There does seem to be institutional investment in Dogecoin although the strength is not that apparent yet. The $0.25 resistance level appears to be a considerable hurdle for Doge to overcome.
However, buying price volumes are constantly on the increase so an assault on the $0.25 level would be logical. There has been little price movement since June 25 however with the price mired between $0.24 and $0.25. However, this level appears to be suggesting a good outcome for the Dogecoin price in the short to medium term.
Will The Bulls Return To DogeCoin?
Although there appears to be some bullish expectation, the situation could quickly turn bearish at a moment’s notice. In fact, if the Dogecoin price dips below the $0.24 level, it would seem that it would be rapidly about to test the $0.195 support level.
Lack of buying support would then signify that a sell off is in progress with the price probably dipping below the 200-day SMA at $0.163. The next level of support would be the June 22 price of $0.152 signifying a 40% decline.
Other extraneous factors apart from the technical analysis are Musk’s tweets and his support for the new Baby Dogecoin. It remains to be seen whether this new allegiance will siphon off interest in the original Dogecoin. So far there does not seem to be any immediate damage but the next few weeks will be interesting.
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Gerald Fenech
