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Dogecoin (DOGE) proved to be the biggest loser today among the top 10 digital coins, leaving investors disappointed.
Despite the Elon Musk effect that boosted the coin’s value earlier this month, Dogecoin has now taken a nosedive, erasing all gains and raising questions about its long-term viability in the ever-changing world of crypto.
As investors brace themselves for the next twist in this rollercoaster ride, one thing is certain: Dogecoin’s journey is far from over.
Dogecoin Price Declines 2.7% Amid Crypto Market Correction
Coingecko price shows Dogecoin dropping 2.7% to $0.084207, following a general correction in the cryptocurrency market. This decrease in price occurred just before the release of the US Consumer Price Index data for March, which indicated a reduction in inflation to its lowest level in two years.
Dogecoin’s recent price decline also coincided with Elon Musk’s decision to remove the token’s official mascot from its home button on Twitter and replace it with the original blue bird logo. This alteration followed the previous surge in DOGE’s price by 30% to $0.104 on April 3, as rumors circulated that Musk was planning to integrate Dogecoin payments into Twitter.
However, instead of adopting the Dogecoin logo on Twitter, the website removed it from its home button around April 7. Consequently, DOGE’s price has dropped by 10.2%.
$DOGE: High time frames this is an area of huge volume, probably a fine area to accumulate a spot position. But it could take a looong time to play out as it normally does, so opportunity cost of that $ could be pricey.
1D: all EMAs flipped bullish, still looking ok. pic.twitter.com/76AM4JxsHm
— Altcoin Sherpa (@AltcoinSherpa) April 11, 2023
DOGE/USD: Support Confluence And Potential Upside
DOGE could still see a rebound in the near term as it approaches a significant support confluence and could attract buyers near $0.080, where its long-standing ascending trendline and 50-day exponential moving average (50-day EMA) intersect. This support level has proven to be strong in the past, limiting the downside in December 2022.
Altcoin Sherpa, an independent market analyst, on Twitter, said that this support zone is an area of significant volume and could be an excellent opportunity for traders to accumulate a spot position.
A bounce from this support confluence could push DOGE/USD towards $0.10 in April or early May, representing a potential upside of around 15% from current price levels.
Crypto total market still a little over the $1 trillion level on the daily chart at TradingView.com
If DOGE were to break below the aforementioned support confluence, it would indicate a decisive bearish move and could lead to a potential downtrend toward the $0.069 level. This price level coincides with DOGE’s multi-month ascending trendline support, which adds to its importance as a potential price floor for the cryptocurrency.
DOGE’s price action will depend heavily on how it reacts to the support confluence. Traders and investors should keep an eye on this level to determine the potential direction of DOGE’s trend in the coming weeks.
-Featured image from Getty/Thinkstock