Dogecoin price has been on a consolidation pattern for over two weeks now as extreme fear remains the main emotion driving the crypto market. Even after rebounding over the past two sessions, it still didn’t attract enough buyers to hit the crucial support-turn-resistance zone of $0.10000.
What’s driving dogecoin price?
After being on a rebound for two consecutive sessions, dogecoin price eased on its gains on Thursday. Earlier in the day, it retested Sunday’s high of $0.8408 as investors digested Wednesday’s Fed meeting minutes.
On the one hand, the Fed’s dovish stance is largely behind the recent gains. The bank’s officials agreed that a slower pace in increasing interest rate hikes may be appropriate; which is bullish for riskier assets like cryptocurrencies.
Even so, the crypto fear & greed index signals that extreme fear remains the key emotion driving the market. As at the time of writing, it was at 20 as has been the case in recent weeks. In fact, this explains why Dogecoin price has failed to yield enough bullish momentum to push past the psychologically crucial zone of $0.10000.
Besides, the ongoing Twitter crisis and concerns that that the firm may collapse in coming months has also contributed to the decline in Dogecoin price. Twitter has recorded losses in eight out of the past ten years. Besides, its total debt stands at $13 billion compared to $596 million before Elon Musk acquired it. With these challenges, the move to integrate Dogecoin into Twitter’s ecosystem may be paused.
Dogecoin price prediction
As seen on its four-hour chart, Dogecoin price has been on a consolidation mode for over two weeks now. It is hovering between the 25 and 50-day EMAs with its RSI at a neutral zone of 51. Based on both the fundamentals and technicals, I am cautiously bullish on its movements in the ensuing sessions.
On the one hand, the bulls will need to break the resistance at 0.09645 to get to the crucial target at 0.10000. However, this thesis will be invalidated by a move below 0.07058.
