With the powerful combination of social media hype and high-profile celebrity endorsements, Dogecoin, the pioneer of meme coins, made its way to the limelight in 2021. Today, DOGE is more than just a meme coin. The crypto has a strong network, use cases, and a dedicated community of supporters.
Given the current market scenario, investors are highly careful about making their decisions. The recent collapse of Silicon Valley Bank and Signature Bank has created a ball of fear within the market, leading to a significant decrease in asset prices.
Even Dogecoin succumbed to massive overhead pressure over the past few weeks, trading at a lower range. However, with the news of the government stepping into control of the damage, crypto prices have started rebounding again. Dogecoin has experienced an upward roll in its trading volume and sees increased interest from whales who have already started accumulating the token. Let’s see the Dogecoin price prediction for this month to make an informed decision.
What Happened To SVB And How It Affected The Crypto Market
The latest dreading news in the crypto sphere has been the fall of the Silicon Valley Bank. Experts said that the downfall of SVB started when it made a significant investment in US government bonds with extremely long maturity periods. The bank's bond investment suffered critical losses when the Federal Reserve began to raise rates quickly to reduce inflation.
The eventual collapse of SVB forced companies like Circle, the one that issues the second largest stablecoin USDC to fall down, as it had exposure to SVB with over $3 billion of reverses stuck in the bank. With USDC dropping 10% from its dollar peg, the crypto sphere was again hit by the news of a sell-off. Investors started panic selling as this reminded them of the TerraUSD crash of May 2022.
The massive crypto sell-off has affected the price of several cryptocurrencies, and the total market capitalization slipped below the $1 trillion mark. However, there has been a spike in the market as the past week came with renewed interest from investors.
Is Dogecoin On An Upward Roll?
Dogecoin was also caught in the explosive selling activities of the past week and suffered a significant price loss and stretched support at $0.0625. But its trading volume of DOGE is on an upward roll, given that whales are accumulating the crypto as investors buy the dip.
At the time of writing, DOGE is trading at $0.075560, with a 24-hour trading volume of $638,886,740. Tweet from Blockchain monitoring service Lookonchain shows that an unknown whale has recently gathered 450 million DOGE worth $39.41 million in two transactions, rising to 20th place on the list of largest DOGE holders.
Whale “D7vrVR” received 250M $DOGE($63M) from #cryptocom 1hr ago and became one of the top 20 holders of Dogecoin.— Lookonchain (@lookonchain) February 16, 2023
And he also received 200M $DOGE($39M) from #cryptocom yesterday.https://t.co/Bzxiqoed4T pic.twitter.com/Lr4dXpYj05
Moreover, its trading volume has also been rising, with over $500 million recorded in 24 hours, representing a 90% increase. A spike in trading volume shows the presence of liquidity from the increased adoption of tokens.
This renewed interest in Dogecoin was also fueled by Elon Musk, who was spotted wearing Doge T-shirts at Super Bowl 2023. Speculations of DOGE again rising to the moon started spreading, boosting the positive social sentiment around the token.
Dogecoin Price Prediction - Technical Analysis
According to a technical analysis of the memecoin’s price, investors should focus more on securing higher support throughout the week, preferably above $0.07. This would significantly reduce the chances of declines going below $0.06. Nevertheless, investors should be prepared to face DOGE price revisiting the most recent support at $0.0625 if things go south in the crypto sphere.
DOGE/USD daily chart
However, the key level to watch closely is $0.07, as maintaining this level is crucial for an immediate uptrend. If DOGE stays above this level, increased interest from investors could again fuel its price to the targeted level of $0.08 and $0.10, respectively. But investors should also keep in mind that if DOGE price spikes above $0.07, it would face resistance in the range between $0.0738 and $0.0758, as investors would likely sell at various breakeven points.
Since the Moving Average Convergence Divergence (MACD) indicator shows a buy signal anytime from now, Dogecoin will not lose its ground even if there is a bearish trend ahead. However, traders are closely watching the chart for the MACD line in blue to flip above the signal line in red. A significant upward move in the momentum indicator toward the mean line at 0.00 and the positive region above it would keep investors' interest strong.
The chart below shows that over 80,500 addresses that bought 34.59 billion DOGE between $0.0738 and $0.0758 are out of the money. If they sell the token at the current market rate, it would be a loss relative to the price at which they bought the tokens.
While on the downside, the chart also shows that the DOGE price lacks strong support. The small green circles imply potential liquidity areas where the meme coin can find support and rebound. As the support areas remain squashed at this point, a small spike in overhead pressure could plunge the DOGE price below $0.06, with potential support at $0.058 before it bounces again.
Investors still believe in the massive rising potential of the popular meme coin, especially now as there is a significant upward roll in its trading volume and an increasing interest from giant whales. This makes DOGE one of the best meme coins to add to your watchlist now.