The price of Dogecoin has been facing significant selling pressure in recent days, resulting in a 23% drop in value over the past week. Despite this, trading volume for DOGE has increased significantly, with a 128% spike to $668 million. Currently, the price of Dogecoin is $0.0740.
Why Is Dogecoin Price in The Red?
The rain started beating Dogecoin price earlier this week when billionaire Elon Musk insinuated that he might be leaving Twitter as CEO. Musk has been at the helm of one of the world’s largest social media platforms for barely three months, within which he hinted at integrating DOGE as Twitter’s official cryptocurrency.
Dogecoin price sensitivity to Musk’s tweets and comments has grown exponentially after taking over Twitter. DOGE rallied by over 178% in October – traded at $0.1596 when Musk’s Twitter acquisition was confirmed.
With Musk’s time at Twitter seemingly running out, Dogecoin price could suffer another hit. However, there is still a chance that the billionaire will stay at Twitter to see the company through the changes he envisioned before bidding to acquire it.
Dogecoin Price Prints Green Candle as Investors Buy the Dip
Dogecoin price appeared defenseless as investors reacted to rumors that Elon Musk would soon leave Twitter as CEO. DOGE spiraled, extending December declines to below support at $0.0744. The buyer congestion at $0.0702 came in handy again and prevented losses from revisiting lower levels.
A quick rebound from that support level allowed Dogecoin price to print a green candlestick. DOGE is exchanging hands at $0.0742 while bulls engage in an intense tug-of-war with the bears.
The Moving Average Convergence Divergence (MACD) indicator affirms that the least resistance path is gradually flipping to the upside. Traders may wait until the MACD (blue line) crosses above the signal line (in red) before firing up their buy orders.
It is worth mentioning that the expected rebound from support at $0.0702 will confirm Dogecoin price uptrend after cracking through resistance provided by the trend lines, illustrated as dotted and continuous lines.
A break and hold above all the major moving averages, including the 50-day Exponential Moving Average (EMA) (in red) at $0.0867, the 100-day (in blue) at $0.0892 and the 200-day EMA (in purple) at $0.0893 – is necessary for keeping the same uptrend intact.
Investors might consider buying DOGE now that its value has fallen back into the buy zone. According to the Market Value Realized Value (MVRV) ratio at -11.65, Dogecoin price is trading significantly below what would be considered a fair market value.
For this reason, investors tend to put brakes on selling, afraid to incur losses. As sidelined market participants buy the dip, buying pressure mounts behind Dogecoin price, which leads to a rebound. Dogecoin remains undervalued until the MVRV ratio lifts above the mean line at 1.
Large-volume holders known as whales are taking advantage of the price to fill their bags. Even as Dogecoin price retreated from highs around $0.1596, whales did not waver.
On-chain data from Santiment shows that addresses with between 100,000 and 1,000,000 coins now hold 6% of DOGE’s total supply from August’s low at 5.58%. Moreover, addresses with between 1M and 10M tokens hold 7.4% of the total supply from 6.91% in the same five-month period.
Dogecoin price recovery will greatly depend on support from whales and retail investors. Therefore, the increase in uptake of the meme coin is a positive signal and will eventually push for a significant northbound move.
Altcoins Offering Quicker Returns
Dogecoin price is about to flash a buy signal following this week’s 23% dip. As investors consider buying the dip, they could also explore newer crypto projects that have the potential to return massive gains. The tokens listed here are currently in their presales ahead of their initial exchange listings.
C+Charge (CCHG)
This is a strong Peer-to-Peer (P2P) payment system for EV charging stations developed by C+Charge using blockchain technology. Individual electronic wallets will be given to users, who can use the wallets to pay for EV charging with the C+Charge utility token.
It is widely known that there need to be more electric power stations to charge the increasing number of EVs on global roads. The EV arena is further complicated by the lack of industry standards for charging. However, with C+Charge, most problems have been addressed using a dynamic token, CCHG.
In addition to providing access to carbon credits, CCHG tokens will be used by drivers to pay for EV charging services. Operators of the charging stations will also receive payment via the same token.
C+Charge is conducting a presale where 0.013 USDT buys 1 CCHG. The price will increase to 0.0165 USDT in the next presale stage.’
Visit C+Charge Now.
FightOut (FGHT)
FightOut is a new crypto project redefining the fitness lifestyle with Web3 solutions. It is a Move-to-Earn (M2E) app with a gym chain that gamifies the fitness lifestyle. Users in the ecosystem are rewarded for completing predetermined workouts and challenges while earning badges and growing within a dynamic community.
A tokenized economy will help run the ecosystem where users earn FGHT tokens for completing M2E tasks. Since FightOut is coming to revolutionize the fitness economy with Web3 solutions, users can create accounts and mint their own digital NFT avatars to use in the metaverse.
Visit FightOut Now
Dash 2 Trade (D2T)
Dash 2 Trade is a cryptocurrency platform changing how people view and manage their crypto portfolios. This platform gives users access to world-class crypto analytics and social trading tools.
Dash 2 Trade has many features and services that traders can explore as they navigate the dynamic cryptocurrency market. In addition to timely trading signals, Dash 2 Trade offers social sentiment and on-chain analysis to spot trending coins easily.
Dash 2 Trade presale has raised $10.24 million and is in the final stage. D2T is selling for $0.0533 ahead of its first exchange listing on January 11.
Visit Dash 2 Trade Now.
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