Musk speaks for Dogecoin [DOGE] again, but is that enough for push to 10 cents

Please fol­low and like us:
Pin Share

The DOGE­fa­ther is back to push­ing the meme­coin up again after weeks of bear­ish­ness. Reas­sur­ing the com­mu­ni­ty recent­ly, Elon Musk tweet­ed his sup­port for Doge­coin. As expect­ed, the same trig­gered bull­ish­ness for DOGE. 

DOGE‑y takes a leap

Trad­ing at $0.05 or 5 cents, DOGE hasn’t shown a lot of promise as an asset. And, while the broad­er mar­ket bear­ish­ness has sub­dued the growth of many cryp­tocur­ren­cies, Doge­coin has been dis­ap­point­ing its investors since May 2021. 

After the crypto’s ATH, it hasn’t stopped falling on the charts. In fact, at this moment, DOGE is bare­ly recov­er­ing from its low­est-ever point since June 2021.

Doge­coin price action | Source: Trad­ingView – AMBCrypto

Dur­ing the recent 32% crash, DOGE fell into the over­sold zone and it has since been slow­ly mak­ing its way back up. The same spiked today, along with the price action, by 7.77% fol­low­ing the Tes­la CEO’s comment.

How­ev­er, it is not any and every DOGE-relat­ed announce­ment that induces a hike. The proof of the same lies in the fact that despite gain­ing the atten­tion of the bas­ket­ball com­mu­ni­ty after the meme­coin backed the Big 3 league team Aliens, DOGE failed to ral­ly on 13 June as sig­nif­i­cant­ly as it did on 19 June.

Musk’s influ­ence even man­aged to counter the broad­er market’s effects, result­ing in a ral­ly, in spite of the altcoin’s volatil­i­ty being at a 45-day low.

Dogecoin’s volatil­i­ty | Source: Intothe­block – AMBCrypto

That being said, investors shouldn’t real­ly build any high expec­ta­tions. Espe­cial­ly as this momen­tary spike will not be able to bear the weight of inval­i­dat­ing the slump­ing market. 

Increas­ing fear in the cryp­to-mar­ket has result­ed in con­sis­tent depre­ci­a­tion of Dogecoin’s mar­ket val­ue, bring­ing it to its low­est-ever point.

Doge­coin mar­ket val­ue | Source: San­ti­ment – AMBCrypto

Some real DOGE fans here…

Regard­less, a loy­al bunch of DOGE hold­ers remains unfazed by the market’s devel­op­ments and con­tin­ue to con­tribute to the growth of Dogecoin’s long-term hold­er cohort.

The address­es, which have held their sup­ply for more than six months, did not loosen their grasp even as the mar­ket was hit with two crash­es. In fact, they cur­rent­ly admit dom­i­nance over 34.5% of the entire supply.

Sim­i­lar­ly, the 12–18 months group also grew its author­i­ty from 4% to 7% in the span of two months.

Doge­coin sup­ply dis­tri­b­u­tion | Source: Intothe­block – AMBCrypto

Thus, while today might have been fruit­ful for Doge­coin, it isn’t enough to take the coin up to 10 cents. For that, it might need a big­ger push from Elon Musk or may need more sup­port from the broad­er market.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *