Dogecoin price recorded a better performance than most other cryptocurrencies. While it will likely record further gains in the short term, investors are keen on how the altcoin will perform amid the persistent crypto winter.
Dogecoin’s performance was much better than most of the other digital assets in 2022. Amid the crypto winter, the memecoin dropped by about 60% in the just concluded year. In comparison, bitcoin, ethereum, cardano, and solana had their prices decline by 65%, 68%, 81%, and 94% respectively.
According to data available on intotheblock, 55% of the holders were making money at the current dogecoin price as of 2nd January. In comparison, the number of holders profiting from Bitcoin’s current price was at 44%.
A look at both the fundamentals and technicals shows investors’ optimism that Dogecoin price has already found its bottom and that it will record further gains in the coming months. Even so, the bearish sentiment that continues to shape the broader crypto industry will likely weigh on the altcoin.
Dogecoin price outlook
Earlier on Monday, Dogecoin price rose to its highest level in close to a week at 0.07374. While it has since pulled back, I forecast further gains in the short term as investors take notice of the bullish trend.
With regards to the technicals, the altcoin remained above the crucial support zone of 0.07000. As shown on its four-hour chart, it was trading above the 25-day EMA while hovering around the medium-term 50-day EMA. Besides, it is close to the overbought territory with an RSI of 63.
In the short term, I expect Dogecoin price to continue trading above the aforementioned support zone as the bulls eye the next target at 0.07908. In fact, a move below that support level will invalidate this bullish thesis.
However, even with this bullish outlook, its path in the medium and long term largely depend on the market sentiment in the broader crypto industry. Seeing that risk aversion continues to define the investors’ mood, the once steady support level of 0.08305 will likely remain a key resistance zone for the altcoin in the short term.