- DOGE’s price experienced an impressive increase of over 10% that day, driving it to $0.076 at the time of reporting.
- The recent surge in Dogecoin’s price is linked to rumors suggesting that Tesla might retain the cryptocurrency in its payment page source code.
Dogecoin (DOGE) enthusiasts are determined to maintain the $0.070 price range. Despite a setback on July 15th, when it briefly dropped to $0.0751, the bullish supporters quickly rallied and reestablished the price zone.
Following the candlestick session’s close above the previous low point, DOGE gained confidence and set its sights on reaching the previous high within its trading range. On the other hand, Bitcoin (BTC) experienced a significant recovery from its lowest point at $30,000, but at the time of writing, it had not yet surpassed the midpoint of its range at $30,500.
What Are The Factors Driving The Dogecoin Price
Friday, July 21, marked a remarkable price surge for Dogecoin (DOGE), which caught the crypto community’s attention. Notably, DOGE’s price experienced an impressive increase of over 10% that day, driving it to $0.076 at the time of reporting, surpassing the resistance at $0.07, and heading towards the psychologically significant level of $0.08. This bullish momentum resulted in the meme coin’s market capitalization rising from $9.67 billion to $10.66 billion, adding approximately $1 billion in value.
The immense hype generated through social media and the endorsement of influential figures and groups significantly contributed to Dogecoin’s previous success. One particularly influential individual is billionaire Elon Musk. Since Musk started tweeting about the meme coin, Dogecoin has garnered increased attention from cryptocurrency investors, and his positive tweets have triggered significant spikes in interest and price.
The recent surge in Dogecoin’s price is linked to rumors suggesting that Tesla might retain the cryptocurrency in its payment page source code. Dogecoin became the second cryptocurrency accepted by Tesla after the automaker added Bitcoin as a payment option in 2021. However, Tesla has since removed the option to pay with Bitcoin and eliminated it from its payment page’s source code.
At present, Tesla has deleted “bitcoin” in the source code of its payment page, but still retains “dogecoin”. pic.twitter.com/BQrRtuTN8Z
— Wu Blockchain (@WuBlockchain) July 21, 2023
The value of Dogecoin is encountering a sell wall.
On July 21, the price of Dogecoin (DOGE) reached an intra-day peak of $0.076, marking a notable 10% increase for the day. This surge allowed the meme coin to breach the $0.075 resistance level for the first time since May. However, the breakout was premature as DOGE experienced a 6% retracement, leading to the current price of $0.072.
The $0.075 zone has proven to be a formidable roadblock, with investors seemingly creating a sell wall around this level, consistently repelling the asset’s price. Suppose DOGE bulls fail to overcome this resistance. In that case, there is a risk of the Dogecoin price pulling back and potentially losing support from the 50- and 100-day Exponential Moving Averages (EMAs) at $0.070 and $0.074, respectively. In a worst-case scenario, the cryptocurrency could fall below the uptrend line.
Data from IntoTheBlock reveals the significance of the $0.075 zone, as it corresponds to a range where approximately 443,980 addresses purchased around 34.34 billion DOGE tokens at an average price of $0.079. Consequently, any attempts by the Dogecoin price to break above this zone would likely encounter selling pressure from these addresses, as they may either book profits or cash in after reaching their breakeven point.
At the current price range, about 63.03 billion DOGE tokens (based on volume metrics) are in a loss position, meaning their holders are experiencing losses on their investments. This explains the high selling pressure around the $0.075 level, as these holders may look to sell once the market value reaches their average cost and breakeven price. As a result, the $0.075 level serves as significant resistance, impeding further upward movements in the price of Dogecoin.
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