Dogecoin DOGE/USD has weakened from the record highs above $0.73, registered on 8th May, below $0.17, and the current price stands around $0.21. Dogecoin could weaken even more in the upcoming days, the critical support level stands at $0.15, and if the price breaks it, the next price target could be around $0.10 or even below.
Fundamental analysis: Dogecoin update is coming soon
Dogecoin is a derivative of Luckycoin that has started to attract interest from traders after Elon Musk’s comments. Elon Musk bought Dogecoin for his son and said that the only thing hindering this coin from becoming the “official currency of the internet” is its high concentration level among a few rich people.
Dogecoin has one-minute block intervals making it faster than other blockchains, but there is still a level of uncertainty surrounding this project. Dogecoin has collapsed from its record highs registered in May 2021, and the risk of further declines is probably not over.
Last week, crypto YouTuber Matt Wallace said that the Dogecoin update is coming soon, which will set DOGE to become one of the most used currencies globally. Tesla CEO Elon Musk said once again that he remains optimistic about the future of Dogecoin, which could beat out Ethereum and Bitcoin after a protocol change.
“Bitcoin and Ethereum are pursuing a multilayer transaction system, but the base layer transaction rate is slow & transaction cost is high. There is merit (in my opinion) to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer,” said Elon Musk.
Dogecoin could advance again at levels that we saw in April 2021, but this will certainly not happen in the upcoming weeks or even months. Investors should also have in mind that if the price of Bitcoin falls again below the $30000 support, that will negatively influence Dogecoin.
Technical analysis: $0.15 represents a strong support level
The cryptocurrency market remains under pressure, and probably it is not the best moment to invest in Dogecoin (DOGE). The risk of further decline is still not over, and it may take a long time for prices to see any bigger recovery.
Data source: tradingview.com
The critical support level stands at $0.15, and if the price breaks it, the next price target could be around $0.10 or even below.
Dogecoin has collapsed from its record highs registered in May 2021, and it may take a long time for prices to see any bigger recovery. The risk of further declines is probably not over, and Investors should consider that if the price of Bitcoin falls again below the $30000 support, Dogecoin could be at much lower price levels. The positive news is that the Dogecoin update is coming soon, while Elon Musk said that Dogecoin could beat out Ethereum and Bitcoin after a protocol change.
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