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Dogecoin recently saw a significant boost, climbing above $0.11 on August 23, marking a 13% increase in just a week. This surge has caught the attention of many, with analysts now watching closely for the next move. With recent trends in the derivatives market pointing to a possible breakout towards $0.15, the question on everyone's mind is: What's next for Dogecoin? Let's take a look at this Dogecoin price prediction article in more detail.
How has the Dogecoin Price Moved Recently?
Today, Dogecoin is priced at $0.10964, with a 24-hour trading volume of $52.59 billion and a market cap of $15.84 billion, representing a market dominance of 0.71%. Over the past 24 hours, DOGE has seen a 0.40% increase.
Dogecoin hit its peak price on May 8, 2021, reaching an all-time high of $0.738595. Its lowest point was on May 7, 2015, when it traded at just $0.00008547. Since its all-time high, the lowest Dogecoin price was $0.049701 (cycle low), while the highest price since that low was $0.227362 (cycle high). Currently, the market sentiment for Dogecoin is neutral, and the Fear & Greed Index stands at 55, indicating a state of Greed.
Dogecoin's circulating supply is currently 144.46 billion DOGE, with an annual supply inflation rate of 2.71%, meaning that 3.81 billion DOGE were minted in the past year.
Why is Dogecoin (DOGE) Price Steady?
Dogecoin's price has remained steady around the $0.11 mark, despite a broader market rebound and positive developments in the crypto space. After the market crash on August 5, DOGE managed to recover from a low of $0.082, fueled by encouraging news such as Brazil's approval of SOL ETFs and Russia's green light for crypto mining.
This bullish sentiment lifted DOGE to the $0.11 resistance level, where it has since encountered a barrier, preventing further upward movement.
The current steadiness in Dogecoin's price can be attributed to a few factors. Firstly, the initial excitement from the positive market news has waned, leading to a lack of fresh momentum to push DOGE beyond the $0.11 resistance.
Additionally, the broader market is experiencing a consolidation phase, where investors are cautiously evaluating their next moves. This cautious approach, combined with Dogecoin's recent struggle to break through its resistance, has resulted in the cryptocurrency trading within a narrow range. Looking ahead, Dogecoin's price may continue to hover around the $0.11 level unless a significant catalyst emerges to drive it either above the resistance or down towards support levels.
Dogecoin Price Prediction: Will Dogecoin Price Rise?
Dogecoin has seen a significant price increase of 73% over the past year, outperforming 52% of the top 100 crypto assets during this period. This strong performance indicates resilience and growing investor interest in DOGE, particularly as it benefits from high liquidity relative to its market cap.
However, despite these gains, Dogecoin is still trading below its 200-day simple moving average, suggesting that it hasn't yet entered a sustained bullish trend. Additionally, the cryptocurrency has experienced only 9 green days in the last 30 days, reflecting ongoing volatility and uncertainty.
Given that DOGE remains down 85% from its all-time high, there is potential for a significant upside if market conditions turn favorable. However, with the current yearly inflation rate of 2.71%, which adds more DOGE into circulation, upward pressure on the price may be limited unless there is a substantial increase in demand.
In the short term, Dogecoin's price may remain relatively steady or experience gradual gains, but breaking out of its current range will likely require stronger market catalysts or a shift in broader market sentiment.
While there is potential for Dogecoin's price to rise, especially given its past performance and liquidity, investors should remain cautious as the path to significant growth may be gradual and dependent on overcoming key resistance levels.