The Price of Needs to Retest USD 0.092 to Resume Its Bullish Trend
Although DOGE has a price below the 20, 50, and 100-day EMA, it may recover slightly in September. While CoinMarketCap predicted growth of about 40% regarding the current value, Mark Cuban said it has a higher potential than ADA.
Dogecoin (DOGE) fell from its all-time high of 0.73 USDT in May 2021 to its yearly low of 0.0491 USDT on June 17th, 2022.
Although the decline was initially gradual, DOGE has been on a steady sell-off after exceeding USD 0.19 in December 2021. Some old incentives, including the words of Tesla CEO Elon Musk, have been missing.
The bulls recovered the value of Dogecoin to USD 0.091 on June 16th, 2022, after it hit yearly lows. However, it returned to its bearish trend to test USD 0.0602 on August 30th.
Although its price is below the 20, 50, and 100-day EMA, Dogecoin may show a slight recovery. That indicates that it has a marked bearish trend, just as most cryptocurrencies in the market.
In addition, DOGE needs to test USD 0.092 to return to the recovery trend of mid-August. A drop to USD 0.05 could push the price toward the next support at USD 0.049.
Another relevant point is the breakout of the 20/50 EMA on August 25th, which followed a large red candlestick. Besides, the price of DOGE correlates with that of Bitcoin by more than 70%.
The Fed Causes Cryptocurrency Investors Lose Faith
The announcement of drastic measures against inflation by Jerome Powell, the Fed chairman, affected the price of DOGE. Meanwhile, Elon Musk, who contributed to the FOMO about the value of Dogecoin, did not say anything else. The promises that we people could acquire the Tesla electric cars with the meme coin remained in words.
Regarding the Fed issue, the markets are still attentive to the measures that it may take. In other words, nobody knows what the new drastic interest rates will be, which causes some nervousness.
New York Fed chairman President John Williams said they would need a tightening policy for some time. He also said they needed a somewhat restrictive strategy to curb demand but did not yet have it.
OANDA Senior Analyst Edward Moya believes that risk aversion is back, and Bitcoin looks vulnerable if the sell-off on Wall Street intensifies. He explained that BTC might go back to the lows of June if the S&P 500 Index falls by 3% in the following few days.
However, DOGE Still Creates Expectations in the Market
Despite the price lows of DOGE, the meme coin continues to arouse expectations among investors.
In a recently published survey, participants expressed they believed the DOGE price would return to USD 0.089 in September. The expectation of 1,079 voters from CoinMarketCap projects growth of about 40% regarding the current price.
Other respondents pointed out that the price will return to USD 0.1, which seems difficult to reach.
Mark Cuban, Dallas Mavericks owner, expressed his optimism, saying Dogecoin has a higher potential than Cardano (ADA).
Besides the above opinions, Dogecoin has many users who still trust it. However, nobody knows whether it can maintain that faith for the rest of the year.
By Alexander Salazar
