Markets Have Taken a Breather. How has Dogecoin Fared?

The broader cryptocurrency market has been seeing red for the last two days. The leading cryptocurrency Bitcoin was aiming for $32,000 when the dump came, and BTC price went down to $28,640. Similarly, Ether fell to $1,930 before seeing some reprieve to now trade at $1,950, according to CoinGecko.

In tandem with the crypto majors, altcoins are down as much as 3-10% in the past 24 hours, which has sent the total crypto market cap to $1.25 trillion.

However, there is one coin that is defying this trend, and that’s Dogecoin (DOGE). During the ongoing market shake-up, DOGE reached a peak of $0.937.

Up more than 4% in the past 24 hours with a trading volume of over $1.74 bln, Doge has been changing hands at $0.92 at the time of writing. It is not just this week, but the leading meme coin has been seeing impressive growth over the past three and six months, recording increases of 11.4% and 53%, respectively. 

DOGE is currently experiencing resistance at the psychological level of $0.095, which could pose a challenge to its upward momentum. However, if DOGE manages to break above this level, it could potentially test the $0.0960 resistance, confirming a bullish breakout. 

If this level is surpassed, the next hurdle for DOGE would be the psychological level of $0.1. Breaking through these levels could signal a strong bullish trend, potentially leading to a further rise toward the $0.1118 high. 

While currently down 87.5% from its all-time high (ATH) of $0.73 hit in May 2021, the coin is up about 30% YTD.

This is believed to be in anticipation of a significant date for meme fans as well as positive news from Elon Musk. Twitter, SpaceX, and Tesla CEO Elon Musk is a vocal supporter of DOGE, publicly endorsing it as his favorite cryptocurrency and featuring it on a segment of Saturday Night Live in 2021. 

Last week, he further demonstrated his support by briefly replacing Twitter’s logo with the Shiba Inu image, the official logo of DOGE. This move initially caused a spike in DOGE’s price, but the excitement soon died down, causing a subsequent slump.

This time, however, the contributing factor to DOGE’s price jump is not Twitter but SpaceX.

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SpaceX’s Launch of Starship on 4/20

This week, SpaceX announced the launch of 21 second-generation Starlink satellites. While the launch of new Starlinks is important, the upcoming launch of Starship, SpaceX’s fully reusable and most powerful space rocket, is even more significant. 

This rocket will be used for manned missions to other planets, including Mars and the moon. After several delays, the launch is now scheduled for April 20, a day also known as “Doge Day” among Dogecoin enthusiasts.

Musk teased the Dogecoin community by announcing the launch of Starship on April 20, or “420 Day.” Musk tweeted that all systems were green for launch, and Dogecoin co-founder Billy Markus responded positively, expressing his excitement. 

The launch had originally been planned for earlier in the week but was delayed due to technical issues. This delay sparked jokes from the DOGE community that it was happening for the sake of memes.

However, this is not the first time SpaceX has been giving the Doge community an opportunity to celebrate.

Earlier this year, SpaceX announced its plan to launch the Doge-1 lunar mission, a mission paid for with Dogecoin. The Geometric Energy Corporation (GEC) paid SpaceX in DOGE to launch a satellite into lunar orbit, and this mission is expected to take place in Q3 of 2022.

This mission was initially announced by Musk, who tweeted that SpaceX was going to “put a literal Dogecoin on a literal Moon” on April 1, 2021. Many people thought this was an April Fool’s joke, but Musk later shared more details via his Twitter account. The satellite was initially expected to be launched in March 2022, but it has been postponed to later this year.

The Doge-1 lunar mission has garnered a lot of attention and interest from both the crypto and space communities. It will mark the first time a commercial mission will be paid for with a cryptocurrency and is seen as a milestone for both industries. 

The successful completion of the mission will further establish Dogecoin’s place in the crypto world and may lead to more adoption and use cases for the meme-inspired cryptocurrency.

Technicals & On-chain Analysis of DOGE’s Price Outlook

Besides Musk, a rally in meme coins like the newly launched PEPE, which uses the “Pepe The Frog” character as its mascot, soared by 7,500x in a matter of few hours, ignited interest in other meme coins like the original meme king Doge. 

On top of this, on-chain metrics and technical analysis also support the positive outlook for DOGE. 

Both the indicators, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are in the positive territory, suggesting that buyers are dominating the market and driving up the price of DOGE. The price strength of 58 confirms that the market sentiment is bullish and indicates that there is a higher demand for DOGE than the available supply. 

Additionally, DOGE’s price is trading above critical Simple Moving Averages (SMAs) that are trending upwards and offering robust support on any price dips. The 200-day and 100-day SMAs have reached a significant support level of $0.0824, attracting substantial buyer interest. 

Meanwhile, the 50-day SMA, which currently stands at $0.0792, presents another strong support level for the bulls to regroup and launch another recovery attempt. Overall, DOGE’s price action above these SMAs suggests a bullish trend and strengthens the likelihood of further upside movements in the near term.

According to the on-chain analysis provided by Into the Block, DOGE also has a solid support base on the downside. The In/Out of the Money Around Price (IOMAP) model indicates that the most likely direction for DOGE’s price is upward, with significant resistance levels far off. 

Moreover, the IOMAP chart reveals that approximately 6.71 billion DOGE were previously purchased at a $0.0824 level by nearly 163,840 addresses, further reinforcing the support level at this price range. This suggests that DOGE’s price will likely experience a bullish trend, with a lower likelihood of significant price drops. 

In short, these on-chain metrics provide a positive outlook for DOGE in the near future.

While based on the IOMAP model, it appears that a significant percentage of DOGE holders are currently experiencing profits at the current price, there is also a possibility of profit-taking, which could result in selling pressure that may challenge the bullish outlook. 

Currently, $0.09, $0.0824, and $0.0626 are major support levels for Dogecoin that could provide a base for DOGE’s price to stabilize. 

Overall, the technical setup and on-chain metrics suggest that DOGE has a positive outlook. Analysts predict a potential surge in buyer momentum for Dogecoin, especially with SpaceX’s imminent satellite launch. 

However, crypto is an extremely volatile market, and prices can plummet just as quickly as they rise. Therefore, it is crucial to exercise caution, conduct thorough and your own research, and only invest what you can afford to lose.

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