Dogecoin price has eased from the four-month high it hit earlier in the week. Granted, swaping of the Twitter bird logo to the cryptocurrency’s emblem may continue to support the altcoin in the short term. Even so, macroeconomics will remain at play.
Fundamentals
In addition to the macroeconomics, cryptocurrencies are largely driven by news and speculations. Besides, seeing that Bitcoin is the leading crypto by means of market capitalization, altcoins tend to move in tandem with BTC/USD.
However, there are some instances where specific altcoins defy the trend. Dogecoin price’s recent movements is one such instance. On the one hand, bitcoin price has been range-bound between $26,550.49 and $29,251.64 for over two weeks now.
Since 17th March, BTC/USD has risen by 7.96%. During the same period, altcoins like Cardano and Ethereum have risen by 23.58% and 14.42% respectively.In comparison, Dogecoin price has been up by 37.45% during the same period.
The latest catalyst for the meme coin is Elon Musk’s decision to change Twitter’s bird logo with that of Dogecoin’s emblem of a shiba inu dog. This comes a few days after the Twitter CEO petitioned a US federal court to dismiss the $258 billion lawsuit against him from the Dogecoin investors.
The plaintiffs accused Musk of operating a pyramid scheme in support of the cryptocurrency. According to the lawsuit filed in June 2022, the investors allege that the Twitter CEO deliberately boosted dogecoin price by over 36,000% over a span of two years before allowing it to plummet.
Dogecoin price prediction
Earlier in the week, DOGE/USD surged to a four-month high at 0.1047 as the market reacted to Elon Musk’s decision to swap the Twitter logo for the Dogecoin emblem. Granted, it has since eased to 0.0964 as at the time of writing.
A look at its daily chart shows that the bulls are in control as the altcoin continues to trade above the 25 and 50-day EMAs. Indeed, these EMAs appear to be forming a golden cross as the 25-day EMA crosses above the 50-day EMA to the upside.
In the ensuing sessions, I expect dogecoin price to remain steady above the crucial support zone of 0.0800. In the immediate term, it may hover around the support level of 0.0954. A further pullback will have the bears eyeing the lower level of 0.0882.
On the upside, 0.1047 will be a resistance level worth watching in the short term. Indeed, the bulls would need to gather enough momentum to break this resistance if the crypto is to rally further to its next target at 0.1081.
