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Dogecoin’s [DOGE] price movement has been piggybacking on the community and social media hype. The general social sentiment around the asset isn’t optimistic but that is yet to reflect on its price action. To top that, the fee reduction upgrade can further boost its momentum.
The popular meme coin has, once again, managed to invalidate bearish cues and surged by 5.22% over the past 24-hours. As it went on to create a local top, DOGE was found to be exchanging hands at $0.278.
Additionally, Dogecoin developers have revealed that the Dogecoin Core 1.14.5 version is in the final stages. The release of this version is crucial because it involves the highly-anticipated fee reduction for all network participants.
Dogecoin Core 1.14.5 has been tagged ("gone gold", but for open source), and we're running the Gitian build process for it now. It's not done until we verify the build is good, but sooooon https://t.co/s3NolYxbI1
— Dogecoin Developers (@dogecoin_devs) November 7, 2021
Significance of Dogecoin’s [DOGE] New Version
Tesla chief Elon Musk had previously backed the upgrade while emphasizing on the importance of lowering DOGE transaction fees. Back in August, Musk had stated that upgrade such as this would help to turn the asset into a viable means of payment. This was the time, when America’s biggest movie theater chain, AMC Theatres added support for Dogecoin in addition to Bitcoin and other major crypto-assets. It was followed by a major price rally which, in turn, intensified development activity within the DOGE community.
Super important for Doge fees to drop to make things like buying movie tix viable
— Lorde Edge (@elonmusk) September 22, 2021
But the trend has changed. As the market entered the fourth quarter of the year, mostly altcoins with stronger narratives backing them have proliferated. Parody or joke coins, on the other hand, have taken a back seat. Hence, the release of the new version could renew optimism in the DOGE market.
How do DOGE’s technicals look like?
As noted earlier, DOGE was on its way to establishing a new local top. However, the technicals do not look very optimistic. Zooming out, the meme-coin was still stuck in a consolidation phase and was nowhere near the massive rally it had spun out in May this year.
The daily moving averages painted a bearish picture. The 200 DMA [Yellow], for one, was hovering above the DOGE price candles while resisting an upward break. The 100 DMA [Blue] and the 50 DMA [Pink] were below the candlestick arrangement.
The switch to green closing bars of Awesome Oscillator [AO] depicted a weak but bullish momentum in the market. Additionally, a minor divergence of the Bollinger Bands [BB] may indicate an uptick in volatility which may favor the bulls. Besides, the Relative Strength Index’s [RSI] bounce towards 60 indicated a rise in buying pressure in the market.
If DOGE manages to break above the 200 DMA at $0.28, upside resistance levels of $0.33, and $0.42 will come into play. If the asset manages to retain the bullish momentum, it could also target the resistance of $0.55.