Dogecoin price shows short-term bullish momentum after Elon Musk declares X as DOGE friendly

  • Dogecoin price is nurturing an uptrend despite broader market gloom after the recent 15% crash in Bitcoin price.
  • DOGE could rise above the early July highs at around the $0.07000 level, potentially tagging the $0.07303 - $0.07689 order block.
  • The outlook is supported by X’s CEO, Elon Musk, reiterating the giant social media platform’s support for the meme coin.
  • Invalidation of this thesis would occur upon a decisive daily candlestick close below the $0.05984 level.

Dogecoin (DOGE) price has an uptrend budding, a change of fortune inspired by a recent tweet from technology billionaire, Elon Musk. He endorsed DOGE for yet another time in a recent post on giant social media platform X (formerly Twitter).

Also Read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC finds support, inspires hope for altcoins

Dogecoin price finds strength

Dogecoin (DOGE) price rose by around 5% on August 23 to record an intra-day high of $0.06546 on August 23. It followed Elon Musk’s tweet, endorsing that “X is a dog and Doge friendly place!”

If bulls capitalize on this head start, Dogecoin price could rise toward the supply zone marked in orange. This order block, located between $0.07303 and $0.07689, represents an area where sellers abound. As such, it is likely that DOGE could fall after nearing or tapping this zone because of selling pressure.

However, if bullish momentum is sufficient to overcome selling pressure from the aggressive sellers, the Dogecoin price could breach past it, converting it into a bullish breaker before extending a neck north. Such a move could see DOGE auction at $0.08514 or, in a highly bullish case, reclaim the range high at $0.09620.

The Relative Strength Index (RSI) is moving upwards, showing rising momentum. The same goes for the histogram bars of the Awesome Oscillator (AO), which have turned green to show bulls gaining ground.

DOGE/USDT 1-day chart

Santiment data to support short-term bullish outlook

On-chain data from Santiment supports the current short-term optimism for Dogecoin price. With a focus on the one-week timeframe, the aggregate number of DOGE tokens traded among holders on this day has increased from 214.32 million on August 22 to 323.97 million on August 23. This constitutes a 51% climb from current levels.

Secondly, the social dominance of DOGE has also increased over the same timeframe, moving from 0.107% on August 22 to the current 2.816%. Also, the daily trading USD volume is also up from 206.08 million on August 21 to the current 322.6 million. This constitutes a 57% increase in less than three days.

DOGE Santiment

Conversely, if Dogecoin price loses steam, the dog-themed meme coin could break below the immediate support at $0.05984 with the potential to collect sell-side liquidity before a possible uptrend.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple announced that the payment remittance firm extended its collaboration with FCA regulated digital securities exchange Archax. The collaboration is focused on Real World Asset tokenization, an emerging narrative in the ecosystem. 

More Ripple News

ONDO extends gains despite surge in profit-taking

ONDO extends gains despite surge in profit-taking

ONDO, the governance token of Ondo Finance, trades in the green on Friday, defying the effects of a surge in profit taking from large-wallet investors following the 76% gains seen in the past 30 days. 

More ONDO News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero (XMR) price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for potential short-term correction

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for  potential short-term correction

Bitcoin price daily candlestick closes below the weekly support level of $67,147. Ethereum price is weakening and could retrace to its immediate support at $3,321. Ripple price fails to close above the 50-day Exponential Moving Average.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Federal Reserve (Fed) keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis