Despite a surge in trading volumes since the beginning of the week, DOGE, the native cryptocurrency of the Dogecoin network, remains stable near the $0.10 per token level. Dogecoin trading volumes in the previous day were approximately $800 million, according to CoinGecko. Dogecoin token trading reached its highest level since last Wednesday on Monday, according to TradingView, which cited statistics from the Binance exchange. This figure was over 134 million.
That is higher compared to Dogecoin trading volumes before Elon Musk just took control of Twitter in late October. According to TradingView, Binance’s trading volumes were regularly between 10 and 30 million tokens per day prior to the takeover. However, Monday’s levels pale in comparison to recent weeks, when daily trade volumes have consistently reached the hundreds of millions of tokens. Since trade volumes typically increase in tandem with significant price changes, normal volumes do indeed fit with Dogecoin’s price consolidation.
Price Forecast: DOGE To Retract Toward $0.09?
The bullish impetus that led Dogecoin to reach new multi-week highs above $0.11 on Monday seems to have subsided. A few days ago, DOGE/USD was clearly on an uptrend, but that is no longer the case. Due to the lack of any significant anticipated macro updates, cryptocurrencies may consolidate over the coming days along with larger markets.
The $0.09 region, which served as significant resistance in August and mid-November (and may now function as support), as well as being the location of the 21 and 50-Day Moving Averages, is where DOGE/USD might easily revert to.
CNBC’s Cramer requests that investors sell DOGE
Jim Cramer, host of the CNBC Mad Money show and a popular figure on US television, advised investors on Monday to liquidate their bitcoin holdings before it was too late. He singled out a few other cryptocurrencies, like Dogecoin, as having a chance to fall below $0. The market frequently does the opposite of what Jim Cramer forecasts, according to a joke that some in the financial/Twitter realm have started to take quite seriously in recent years. There are the 21-Day and 50-Day Moving Averages.
Can DOGE reach $1.0 and is the bear market over?
Many bulls will continue to believe that the bear market that began in 2022 and saw prices drop as low as $0.05 per token will have ended when looking at Dogecoin price action over the longer term. In fact, the DOGE/USD pair broke above a significant long-term downtrend on the log chart in late October. When DOGE/USD established support at the downtrend in the early days of November in the wake of the FTX crash, it then appears to have gone on to confirm this breakout.
A comeback above recent highs and to the 2022 highs over $0.20 appears likely if technicians are correct in claiming that the bear market is done. But can it return to the record highs of $0.70 or higher per token set just last year? Or, even better, can Dogecoin reach $1?
That would require a significant improvement in the cryptocurrency’s overall appetite for risk. An improvement in macroeconomic conditions (i.e., easier financial conditions and a better growth backdrop) or advancements toward beneficial crypto legislation in important markets like the US could both result in a recovery in risk appetite.
If Elon Musk lives up to the expectations and incorporates Dogecoin in some capacity into a future Twitter payment system, that might serve as another stimulus for a rally to $1.0. Charles Hoskinson, a well-known cryptocurrency developer and the creator of Cardano, has hypothesised that Musk’s integration of cryptocurrency payments into Twitter may attract 200 million new users to the platform.
A History of Exponential Price Increases for Dogecoin
The price would increase by 900% to $1.0 at that point. Although such a jump might seem improbable, it has happened before in the Dogecoin universe. DOGE/USD increased by approximately 10,000% from the 2017 lows to the early 2018 highs. Then, it increased by almost 64,000% from the record lows in 2020 to the highs in 2021.