Created as a fun alternative to Bitcoin in 2013, Dogecoin initiated a meme coin frenzy in the world market, hitting an all-time high of $0.74 in May 2021. The key catalyst for this was consistent community support and backing from celebrities and billionaires like Elon Musk.
The price has stagnated since then and lies much below the ATH. However, the new year seems to have brought good tidings as the crypto market has started to show signs of recovery from the depths of the FTX-induced crypto winter. And in the current state, investors are curious to know more about the buzz-worthy memecoin and its price prediction.
Musk’s Tweets And Dogecoin
The billionaire and Tesla CEO Elon Musk has always been an ardent supporter of Dogecoin and has been vocal regarding his admiration for the same. He has repeatedly announced it as his favorite cryptocurrency through tweets and numerous other social media posts. Undoubtedly a major part of the crypto’s rise is attributed to Musk and his series of DOGE-favored tweets. Even amidst the crypto winter, Musk's acquisition of Twitter gave the meme coin the much-needed push, and in late January, a report said that Twitter is designing a system to permit crypto payments, sending the meme coin soaring again.
But, some technical analysis shows that Dogecoin remains unchanged despite Musk’s recent tweet, where he said it had come a time for him to confess, “I let the Doge Out ''. Although speculation and social sentiment increased the price to almost 6.6% increase, DOGE is still struggling to trade above its resistance level.
Investors are worried that Musk is losing his power to affect the price of Dogecoin for a sustained price recovery.
Dogecoin Price Faces Rigid Resistance From $0.85 Level
Dogecoin was recovering with the entire market from the 2022 market crash, with the price up 10% since the start of the new year as early bulls took. But data shows that this uptrend exposes a major resistance. It has been reducing in an ascending triangle since December 14. The rejection from the $0.0961 again plunged DOGE into the triangle, marking a failure to its attempt to break this level earlier this month.
The above graph shows that the DOGE price is balanced between the triangle’s support line and the $0.085 supplier congestion level. An attempt to break this resistance level would result in the huge selling of DOGE. While the failure to reclaim this level would show the rigidness of the barrier, and the pressure might send the its price below the triangle’s ascending line at $0.0837
The crypto is trading at $0.081349 as of now, and breaking the barrier of $ 0.85 would confirm a bullish breakout, paving the way for DOGE price to another all-time high. Such a move would require almost a 29% climb from the current price.
Dogecoin - Technical Analysis
Data from In/Out of the Money Around Price (IOMAP) model revealed that this resistance level was within the $0.0846 and $0.0866 price range.
Dogecoin is experiencing major resistance, especially in the Relative Strength Index (RSI), which measures the strength of a market move relative to speed and rebound zones.
It was positioned in the negative region, and the value position at 46 indicates the increased number of sellers than buyers. On the other hand, the Moving Average Convergence Divergence (MACD) indicator breaks the zero line into the negative region, indicating that the current market condition also preferred Dogecoin’s downside.
The crypto’s current momentum is really slow, as it was not even affected much by its favorite supporter's Tweet; it is extremely difficult for the Dogecoin price to break the current resistance level. But experts are not completely hopeless and state that another push for its price with a rally like last week could help DOGE break this barrier and begin the next bull run to $0.1.
Is Dogecoin Ready For A Bull Run in 2023?
One question that is stuck in every investor’s head is if Dogecoin has the potential to begin another bullish rally in 2023. Although it is difficult to provide an accurate answer considering its current momentum, Dogecoin does enjoy a strong following among its dedicated fans and crypto enthusiasts. The crypto has almost 3.6 million and 2.4 million members in Twitter and Reddit communities, respectively.
There are numerous other reasons to be optimistic about the Dogecoin price prediction in 2023. Although DOGE is significantly down for its ATH, and Musk’s tweet hasn't given it the much-needed push lately, the developers are keen to implement additional utility to boost the coin’s value proposition.
Some experts still believe that Elon Musk will find a use case for DOGE on the Twitter platform eventually. The crypto’s official subreddit last year revealed a tipping bot, which allows Twitter users to tip other users. This has garnered much attention as the fees for transferring DOGE to another person are relatively low.
Dogecoin’s inflationary property makes it one of the ideal crypto to become an acceptable payment system. With the increased utility comes massive adoption from merchants, investors, and institutions, which would show an uptick in demand in the coming years.
When Dogecoin was created no one expected it to generate the mass appeal it has now, and now it is one of the most popular meme coins to buy in the market. Although DOGE remains unchanged despite Musk’s recent Tweets, some Dogecoin price prediction shows a positive outlook for the coin in 2023.