Insights Analysis Dogecoin Fundamentals are Shining Bright

Dogecoin Fundamentals are Shining Bright

July 18, 2023 Analysis
BITmarkets | Dogecoin Fundamentals are Shining Bright

On July 18th of the year, the price of popular meme coin DOGE fell 1.75% to $0.068, slightly below the rest of the crypto market which declined 1% over the same period.

DOGE1

DOGE/USD - 1 Week Time Frame

A day earlier, Dogecoin experienced a sudden and dramatic price surge of 3% within just one minute. The impetus was given by a simple tweet by Dogecoin’s ‘Dogefather’ Elon Musk who answered a Twitter question by a user: “Do you like more dogs or cats?”.

Musk replied with one word; “Doges”. Three hours after Musk's tweet, the price of Dogecoin dropped by over 5% which completely erased earlier gains in what seemed to be a rapid profit cash-out by the traders of the popular cryptocurrency.

Doge’s broader price correction

Regardless of Musk’s move, Dogecoin's price decline came as a part of a broader correction from its local high of $0.075 that came on the heels of Ripple's partial win over the U.S. Securities and Exchange Commission (SEC) on Jul 15th of the current year, 2023.

At the time of writing, DOGE broke above the resistance barrier near $0.067. Should it fail to hold the now-turned support could mean an extended decline toward $0.066 price level in the foreseeable future.

Yet, bullish and optimistic traders of the doggy-themed digital asset are eying the $0.076 level, which represents the 200-day moving average. A climb beyond this point may begin the escalation to the $0.085 mark, and perhaps the $0.1 milestone in the coming months.

A BIT about Dogecoin

Made as a joke in 2013 by IBM software engineer Billy Markus and Adobe engineer Jackson Palmer, Dogecoin is now a multi-billion-dollar crypto icon with a market capitalization surpassing $9.5 billion.  

Its growth was heavily driven by ‘Dogefather’ Elon Musk who marketed the coin relentlessly via Twitter. To some extent, the digital asset and Tesla’s CEO are soulbound.

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