• Elon Musk announced that he would resign as the CEO of Twitter as soon as he finds an appropriate replacement. Dogecoin’s price experienced another sell-off this week as a result.
• Dogecoin remains closely tied to Musk, who is a fan of the meme-based token. Traders may wish to enter their long positions after the Moving Average Convergence Divergence (MACD) indicator makes a clear divergence above the signal line.
• Dogecoin must make a clean break above all the major moving averages and move toward and above $0.10 in order for its price to be pushed higher.
Dogecoin (DOGE) has been on a roller coaster ride over the last few months, with its price experiencing an impressive rally and a steep sell-off this week. The meme-based cryptocurrency has been largely influenced by the tweets and comments from tech mogul Elon Musk, who has publicly declared himself a fan of the token.
This week, Musk announced that he would resign as the CEO of Twitter as soon as he finds an appropriate replacement. In response, Dogecoin’s price dropped significantly, shedding over 178% of its value and reaching a low of $0.0741. Many investors may be wondering if the coin is “doomed” and whether this is a good time to buy.
At the moment, Dogecoin is trading at around $0.0741 after bears respected support at $0.0702. Analysts have predicted that the meme coin may drop to test a lower price level at $0.0573 if it confirms a break below $0.0702. However, bullish momentum is gradually building, possibly bolstered by an incoming buy signal from the Moving Average Convergence Divergence (MACD) indicator. Traders may wish to enter their long positions after the MACD (line in blue) makes a clear divergence above the signal line (in red).
On-chain data from Santiment shows that large-volume holders appear to be digging into their pockets to fill their bags. Addresses with 100,000 to 1,000,000 coins now hold 6% of the network’s total supply – the highest proportion in six months. This suggests that investors believe Dogecoin has a long-term bullish outlook.
In order for Dogecoin’s price to be pushed higher, the coin must make a clean break above all the major moving averages, including the 50-day Exponential Moving Average (EMA) (in red) and currently holds at $0.0839, the 100-day EMA (in blue) as seen at $0.0874 and the 200-day EMA (in purple) at $0.884. Moving toward and above $0.10 will require DOGE to trade above two consecutive falling trend lines (dotted and continuous lines).
It may take weeks, if not months, for Elon Musk to decide what he wants to do and as such, the future of DOGE also remains up in the air. That’s why many investors have started looking at newer cryptocurrency projects with more potential in the short term.
FightOut (FGHT) is an Ethereum-based platform that will reward users for engaging in a wide variety of workouts, including boxing, weightlifting and yoga. It will also offer a range of in-app and IRL courses, with plans to launch up to 20 of its own branded gyms (in addition to affiliating with numerous pre-existing facilities). Its token sale has already raised over $2.2 million, with $1 currently buying you 60.06 FGHT tokens.
Dash 2 Trade (D2T) is another Ethereum-based trading intelligence platform that will provide real-time analytics and social trading data when it launches in the first quarter of next year. The sale of its D2T token has raised over $10.4 million and is now in its final stage (and is due to end in 15 days). It has also announced listings on BitMart, Changelly Pro, and LBANK Exchange for early 2023, with the first coming as soon as January 11.
C+Charge (CCHG) is a peer-to-peer payment system for electric vehicle (EV) charging stations. Based on Binance Chain, its aim is to widen access to carbon credits, with which it will reward users for charging their EVs at its terminals. The platform has already signed a deal with Perfect Solutions Turkey, adding 20% of the EV chargers in Turkey to its network. 1 CCHG currently costs $0.013 and can be bought using either BNB or USDT.
In conclusion, Dogecoin’s price has been affected by Elon Musk’s announcement that he will be stepping down from his position as CEO of Twitter. Despite this, Dogecoin remains closely tied to Musk, who is a fan of the meme-based token. In order for the coin to regain its upward momentum, it must make a clean break above all the major moving averages and move toward and above $0.10. Investors may also wish to consider investing in newer projects such as FightOut, Dash 2 Trade, and C+Charge, which offer the potential for quick returns.