As the previous trend is bearish, DOGE could escape from the bottom but there is a relevant demand zone below. The weekly chart indicates that the bulls still dominate, as the rally of previous months overshadows the current decline.
The cryptocurrency market is in trouble as Bitcoin continues to push most altcoins lower. The price of Dogecoin (DOGE) does not escape from that situation, but the following analysis will help see whether it could recover.
After an excellent year, DOGE had a pullback of over 75% after its all-time high of USD 0.75.
DOGE is trading at around USD 0.17 and has accumulated a 0.2% gain in the last 24 hours. Its daily trading volume is above USD 716.74 million, and its market capitalization is about USD 22.62 billion, according to CoinGecko.
Dogecoin Posts Its Roadmap, as the Market Seems Unenthusiastic
The year that has just ended was the best for meme-based cryptocurrencies like DOGE and Shiba Inu (SHIB). However, it seems that investors will hardly regain their appetite for extreme risk after the bubble burst.
The developers behind Dogecoin are looking to regain morale in the memecoin market. For that reason, they posted a roadmap to make that cryptocurrency more than a joke.
After eight years of its inception, the range of use cases of DOGE could start to see progress. Despite that, it seems that investors are not very enthusiastic about investing in that project at the moment.
The roadmap mentions their intentions to create a new website and a wallet and mint NFTs. In addition, it says that they will consult Vitalik Buterin to implement a Proof-of-Stake protocol.
That might promote optimism in the DOGE market, but it has not happened yet. It seems that the price of Bitcoin must first have a rally that generates enthusiasm throughout the cryptocurrency ecosystem.
The Technical Analysis of the Price of Dogecoin
The DOGE/USDT daily chart reveals that the price is sideways, with support at around USD 0.16 and resistance at USD 0.19.
If the price breaks through either extreme, there could be a significant move in the direction where that occurred.
For now, the price of Dogecoin could escape from the bottom, as the previous trend is bearish.
However, below is a relevant demand zone, where holders could slow down sales, and a strong recovery could begin.
The Bullish Force Still Dominates the DOGE Market
The DOGE weekly price chart indicates that the bulls are still the dominant force.
The value of DOGE has fallen by more than 75% from its all-time high. However, when looking to the left, the bullish rally of previous months overshadows the strength of that decline.
Possibly, the price is making a necessary correction before resuming its previous trend.
The price reached the area surrounding the 78.6% Fibonacci retracement tool. From there, it has continued to defend nearby support at USD 0.16.
The current point could be the bottom of the decline before resuming the trend; to confirm that, the price must start to hit increasingly high lows and highs.
Before that happens, Dogecoin will remain at risk. If it loses the support at USD 0.16, it could suffer a quite worrying decline, as the ground will be clear for USD 0.08. However, that scenario is unlikely at this time.
By Alexander Salazar
