Dogecoin Price Prediction As $650M Trading Volume Comes In – Can DOGE Recover To $0.10 Soon?
The biggest and most popular meme coin, DOGE, is back in the spotlight after its main fan, Elon Musk, revealed that he would be transitioning from crypto to artificial intelligence (AI). The Dogecoin price fell this week in line with the rest of the crypto market amid regulatory pressure and the “ghosts” of the messy implosion of Sam Bankman-Fried’s FTX exchange.
Dissecting Dogecoin Price Short Term Technical Picture
DOGE began to give back gains made in January in early February as the Federal Reserve rained down on the aggressive bullish party by raising interest rates by 25 basis points.
At the time, investors believed that a rate hike of 0.25% was good for risky asset classes. However, Jerome Powell’s deflationary remarks quickly became less impactful as several data such as the consumer price index (CPI) and non-farm payrolls, and the unemployment report indicated that inflation would be a dominant concern in the coming months.
As the crypto market bleeds, including DOGE’s 5.4% drop in seven days, investors look ahead to the release of key economic data for March, culminating in the much-anticipated FOMC meeting towards the end of the month.
That said, investors, especially retail investors, are likely to retreat to the sidelines until they can figure out where the crypto market and more specifically the Dogecoin price is headed.
Note that the loss of support at $0.08 means the chances of overhead pressure increasing this weekend are high. Therefore, all eyes are glued on tentative support areas at $0.074 and $0.07 respectively.
The Dogecoin price will remain in the favor of the bulls as long as the leg does not extend beyond $0.07. Otherwise, investors would begin to acclimatize to declines sweeping through lower key levels of $0.06 and $0.05 respectively.
Two control points are coming strong to guide the direction the Dogecoin price may take in this first quarter. This is the psychological resistance at $0.10 and the above critical support at $0.07.
Decline will become evident if Dogecoin price falls below $0.07. From here, investors can anticipate a sweep down to $0.06 and worse to $0.055. On the upside, a break above the coveted $0.10 seller traffic area could be DOGE’s ultimate catalyst for gains back to $0.0159 – highs reached after Elon Musk bought Twitter in October 2022.
Investors should be aware of the massive outflow volume from the DOGE markets as shown by the Money Flow Index (MFI) indicator on the daily chart. Although this index overlays the chart like the RSI, it assesses the flow of volume into and out of the asset’s markets.
A consistent downslope as illustrated on the chart reinforces the bearish grip on the Dogecoin price. Therefore, it may be pointless to expect a big recovery this week, especially not in the coming sessions.
Why Dogecoin price support at $0.074 is solid
Despite the dilapidated technical outlook, Dogecoin price stability at $0.074 can be largely attributed to investors’ strong belief that the meme coin will turn things around. The IOMAP model by IntoTheBlock sheds light on approximately 35.45,000 addresses that bought 34.23 billion DOGE between $0.0738 and $0.0758.
Investors in this group are willing to keep the Dogecoin price profitable as the crypto market battles widespread overhead pressure due to increased regulatory oversight of the industry from the United States.
With a little push, Dogecoin price could take advantage of the liquidity between $0.07 and $0.074 to regain position past $0.08 and possibly start another attack on the seller’s overload zone at $0.10.
Elon Musk jumps from crypto to AI
Elon Musk, the CEO of Twitter has long proven his genuine interest and love for crypto. Dogecoin was the first project to catch the billionaire’s eye to the extent that his tweets affect the price of not only DOGE, but also other related dog-themed meme coins.
Musk now has Dogecoin, Bitcoin (BTC) and Ethereum (ETH). For some time, Tesla, the largest manufacturer of electric vehicles, accepted Bitcoin as a payment method, but the largest cryptocurrency was dropped due to its tendencies to guzzle electrical energy – which is believed to contribute to global warming.
Fast forward to 2023 where AI is making headlines with leading tech giants like Microsoft, Google and Meta rushing to be at the forefront of the wave, Musk reckons he “used to be in crypto, but now I got into AI.”
The tweet sparked interest across the board, with some like Binance asking “why not both?” Others said it’s a future where Musk can combine his love of Dogecoin and his newfound interest in AI.
Musk has been one of the critics of ChapGPT, an AI-powered search tool from OpenAI. ChatGPT exploded late last year, catching the attention of Microsoft, which is reported to have invested $10 billion in OPenAI.
However, Elon Musk warned of the risks of training an AI to be awake but lie. In other words, he was referring to the tendency to receive false information from ChatGPT. Musk declared his interest in AI a week after he warned investors at a Tesla event that people should be careful with the technology.
But don’t take this the wrong way, what Elon Musk is saying is that people need to be careful about the information they give to AI software tools. In fact, the billionaire recently said he would consider starting an AI company to compete ethically with OpenAI.
Dogecoin Options to Buy
If you are looking for other crypto projects with high potential along with DOGE, we have reviewed the top 15 cryptocurrencies for 2023, as analyzed by CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
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