Elon Musk’s Support Boosts DOGE Price to $0.73 in 2021

Dogecoin Price Analysis: Elon Musk's Influence and Future Predictions

In 2021, Dogecoin (DOGE) experienced a significant surge in value, reaching a peak of $0.73 largely due to support from Elon Musk. This marked a milestone in the emergence of meme coins. However, the price subsequently declined, dropping to $0.06 by 2023.

Current Price Level

Dogecoin's price has continued to decline, with the critical support level at $0.1184 visited four times since March 19. The recent 3% drop over seven days has contributed to this decline.

Technical Analysis

Dogecoin has not shown any significant upward movement since June 19, hovering around the support area. As of writing, DOGE is trading at $0.1188, with a 5% drop in the last 24 hours and a market cap of $17.4 billion. Trading volume has increased by 25.71%, amounting to $497.7 million in the past day.

Despite this short-term downturn, the long-term trend remains positive, indicating a potential correction at the current support level. The Stochastic RSI suggests this correction may continue in the short term.

Sentiment Analysis

According to IntoTheBlock data, despite the recent decline, 75.77% of DOGE addresses remain profitable. This could indicate a tendency for investors to take profits in a declining market.

Furthermore, IntoTheBlock data reveals an increase in exchange-directed movement, suggesting that investors are transferring DOGE to exchanges. This trend becomes more significant in conjunction with market declines, as bears capitalize on the situation.

Future Outlook

Dogecoin's presence at the support level raises risks, and the location of liquidity pools will be crucial for determining the direction of the next breakout. If bulls maintain the support and initiate an upward movement, DOGE could test the resistance level at $0.132. However, a loss of the support level could trigger further price declines.