BTC PEERS - 9/18/2023 1:00:51 PM - GMT (+0 )
Dogecoin's price has seen a slight 0.69% increase over the past hour, reaching $0.06219 at the time of writing. This comes after several days of relatively stagnant price action for the popular memecoin.
Despite the past hour's gain, Dogecoin is still trading down over the past 24 hours and 7 days. However, the 1-month and 6-month charts tell a story of a broader recovery for Dogecoin from its lows earlier this year.
Let's take a closer look at the key Dogecoin metrics and trends that traders and investors should be aware of right now:
Dogecoin's price currently sits at $0.06219, up from $0.06171 just one hour ago. This represents a gain of $0.00048 or 0.69% over that timeframe.
Dogecoin's market capitalization stands at $8.77 billion. This makes DOGE the 8th largest cryptocurrency by market cap.
Dogecoin has lost some ground in the market cap rankings over 2022, having been as high as #4 earlier in the year. However, it remains one of the most widely held and traded crypto assets.
Over the past 24 hours, $140.72 million worth of DOGE has been traded on crypto exchanges. This represents a below average level of volume over the past month.
It's clear traders and investors are taking a bit of a breather when it comes to Dogecoin after the volatility and hype seen earlier in 2022.
Lower trading volumes likely explain the lack of significant price movement in recent days, as fewer transactions make it harder for a clear directional bias to develop.
Zooming out from the hourly timeframe, Dogecoin is trading lower over the past 24 hours and 7 days:
- Past 24 hours: -0.02%
- Past 7 days: +1.84%
- Past month: -0.24%
The weekly chart shows the beginnings of a recovery after a local low of $0.05492 on September 12th. The memecoin has since bounced 4.5% off that low.
The monthly trend remains negative, but Dogecoin has been able to bounce off its 2022 low of $0.04918, set on June 18th.
The next resistance level to watch is the psychological $0.065 level, which has capped upside moves several times over the past two months.
Taking a wider view, Dogecoin remains entrenched in a long-term downtrend in 2022. The memecoin is down 14.96% over the past 6 months.
Much of this decline occurred between May and July, when Dogecoin fell from highs above $0.15 down to below $0.06. The $0.065 to $0.07 zone has emerged as a key battleground area.
With Dogecoin still down 85% from its all-time high of $0.7376 from May 2021, there is scope for further recovery if broader crypto market conditions improve. However, significant upside appears unlikely given the breakdown of 2021's bull market structure.
Given recent price action and trends, my prediction is that Dogecoin will remain rangebound between $0.05 and $0.07 over the next 3-6 months. This reflects the currently deteriorating macro environment, characterized by high inflation and the potential for global recession.
However, I expect Dogecoin to experience a renewed uptrend in 2023, once economic conditions begin improving again. This would likely coincide with the next Bitcoin bull market, which historically lifts all altcoins higher.
With its strong brand name and adoption from prominent backers like Elon Musk, Dogecoin is well positioned to retest the $0.10-$0.15 zone in the next Bitcoin bull market.
Upside could be exponential if Dogecoin is able to build further utility through technical development and real-world usage. The Dogecoin community remains passionate and engaged, which helps support the price during periods of weakness.
Dogecoin reaching a new all-time high in 2023 is unlikely based on current trends and market conditions. Its previous high of $0.7376 from May 2021 appears out of reach over the next year.
For Dogecoin to reach such exaggerated levels again, it would likely require another massive hype-fueled bull run like the one seen in early 2021. The crypto market conditions that enabled that mania phase have changed markedly for now.
Additionally, Dogecoin faces stiff competition from newer memecoins like Shiba Inu, which dilutes the potential for DOGE to see the same viral breakout again.
While not impossible, Dogecoin exceeding $0.75 in 2023 seems like a low probability event given the confluence of technical and fundamental factors weighing it down. A more reasonable upside target for next year is $0.10-$0.20.
Dollar cost averaging into a Dogecoin position at current levels around $0.06 can make sense as part of a diversified crypto portfolio. There is decent support here and solid upside potential for patient investors willing to hold for 12-18 months.
However, those looking for quick profits may want to wait for a break above resistance at $0.065 before entering new positions. This would provide greater confirmation of a trend change to the upside.
As always, only invest money you can afford to lose and use proper risk management. Dogecoin remains a speculative asset, so position size accordingly based on your personal risk tolerance. But its strong brand and community do give it an edge over other similar memecoins.