Dogecoin (DOGE), the cryptocurrency that powers the Shiba Inu meme-inspired layer-1 Dogecoin blockchain, was last trading higher by about 1.5% this Tuesday just to the north of the $0.09 level. Dogecoin has now rallied just shy of 3% from Monday’s lows just under $0.09, with buyers seemingly having come in to support the token as it retested its 21 and 100-Day Moving Averages. Near-term price predictions thus remain modestly upbeat.
The 21DMA has consistently provided good support in recent weeks, while Dogecoin also appears to have derived support from an upwards trend channel that has been supporting the price action going all the way back to late December 2022. The bounce on Tuesday comes despite a long-dormant Dogecoin wallet address containing 2,043,137 DOGE being activated for the first time in 9.1 years.
2,043,137 DOGE is worth just shy of $190,000 at current prices. When compared to Dogecoin’s trading volumes of $457 million in the last 24 hours as per CoinMarketCap, that is a drop in the ocean, hence why markets have shrugged off any concerns about these more than 2 million tokens being dumped.
Where Next For Dogecoin (DOGE)?
The cryptocurrency’s near-term direction is likely to be determined by an upcoming speech from the chairman of the US Federal Reserve Jerome Powell at 1240EDT. The Fed raised interest rates by 25 bps to a 4.50-4.75% range last week and Powell’s post-meeting remarks were interpreted dovishly by the market. Traders will thus be looking to Powell’s remarks on the outlook for further interest rate hikes in the hopes he might deliver another boost to sentiment.
But last Friday’s strong US jobs and ISM Services PMI data will have eased concerns being felt at the Fed about a potential incoming US recession, which makes the likelihood of a fresh dovish surprise from Powell less likely. Still, Dogecoin may continue to grind higher given its positive technical outlook – as noted above, the cryptocurrency has responded well to support in the form of the 21 and 100DMAs plus 2023 uptrend. A grind higher again towards recent highs in the $0.10 area looks to be on the cards.
However, should the bears once again regain control, DOGE might break below critical support in the $0.09 area, opening the door to a near-term drop perhaps as low as the $0.078 resistance-turned-support area, where the 50DMA also resides. Dogecoin bulls will be hoping that optimism about a potential integration into a future Twitter payments system will keep the cryptocurrency propped up for now. Twitter owner and CEO Elon Musk recently said he wants any future payments system to accommodate crypto.
