Since the start of the week, Dogecoin, as usual, has followed the general direction of the cryptocurrency market, which is itself influenced by Bitcoin. Thus, Dogecoin has seen some pullbacks lately, with its price having decreased by 7% after the Bitcoin dump at the start of the week.
This happened despite its spectacular rally, which had caused its value to rise to more than $0.1. However, this downtrend was short-lived, with a correction occurring quickly and erasing much of the losses recorded on Wednesday.
Dogecoin price analysis
Analyzing the Dogecoin (DOGE) market reveals elements that are both complex and dynamic. At the moment, the price of Dogecoin is all over the place, sometimes it goes up, sometimes it goes down, so the volatility is not negligible. Its current value is at $0.096, an increase of 6.51% in one day, according to CoinMarketCap.
On the other hand, even though trading volume fell 23.3% to $717 million (which might lead one to believe that day traders chose to watch the market), there was still of the encouraging signs for the future of Dogecoin.
Recent information from IntoTheBlock shows that the number of daily active addresses on Dogecoin has increased surprisingly, reaching 104,227 addresses. In general, when there are more active addresses, it is a good sign for a cryptocurrency because it means more transactions, and therefore boosting the price of the same coin.
#Dogecoin has successfully cleared all major resistance levels!
With the $0.095 support proving strong – thanks to 63,280 addresses buying 3.2 billion $DOGE – the path looks set for an upward journey. If this support remains firm, we could see #DOGE liking for $0.14 next. pic.twitter.com/QmfZ9kY5Dh
— Ali (@ali_charts) December 8, 2023
This good news comes just after the price of DOGE fell 7% following the collapse of Bitcoin. This suggests that things could improve for Dogecoin in the coming days and weeks.
Dogecoin Growth Outlook
The growth prospects of Dogecoin (DOGE) revolve around several key technical indicators, offering a mixed vision of its future potential. Right now, DOGE is doing pretty well staying above its 20-day exponential moving average (EMA).
If Dogecoin manages to hold its current position and even gain a little value, this could be a sign of a rebound that is coming, and obviously pleasing investors by giving them hope for an upward trend. .
On the other hand, if DOGE drops below this 20-day EMA, which is currently at $0.0929, things would be different. Indeed, Dogecoin should look for other points of support, like the 50-day EMA at $0.0817 and the 200-day EMA at $0.0733.
If this happened, we would continue the downward trend we are seeing at the moment. Nonetheless, traders remain optimistic about a potential rebound towards the $0.1 pivot level, success there could pave the way for further gains, with resistances at $0.14 and $0.2 respectively.
On shorter time frames, like the four-hour chart, the same wedge is already showingwith signs of recovery, bouncing on an ascending trendline.
A breakout above the $0.11 level, which has remained elusive even after several weeks of recovery, would negate the current downtrend and represent a major hurdle to overcome for a significant price rise in the near term.
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In addition, holders of LPX tokens, its native cryptocurrency, have access to special benefits such as discounts on their decentralized exchange. LPX holders also benefit from guaranteed access to new cryptocurrencies and NFTs at competitive prices, as well as privileged access to exclusive pre-sales.
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— Launchpad.xyz (@launchpadlpx) December 14, 2023
The LPX token has already seen notable success, with $2.1 million raised during its pre-sale, still in progress. Currently rated at $0.0445 per token, with a listing price of $0.0565 and a 4% bonus.
Additionally, Launchpad XYZ is working to develop a DEX to facilitate essential exchanges and perpetual contracts.
Sources: CoinMarketCap / Launchpad XYZ
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This article does not constitute investment advice in any way. The information provided here should not be used as a basis for making financial decisions. Cryptocurrency investments involve risks and may result in significant losses. You should only invest what you can afford to lose and carry out your own research before making any investment decisions.