This week, the cryptocurrency market remains hot, with some altcoins performing well. Dogecoin (DOGE) ranked among the popular tokens this Friday, alongside Polkadot (DOT) and Tether (USDT), becoming a market focus.
Dogecoin is in the spotlight
Dogecoin has sparked heated discussions due to its unlimited supply and strong community influence. Investors are concerned about mining profits as well as price volatility. Currently, Dogecoin's price is stable above $0.15, slightly up from last week, but needs more buying support to avoid further declines.
I entered a long position at 0.14, and currently, Dogecoin is up 433%. I believe Musk, who has emerged reborn from the White House, will bring unexpected surprises!
Technical Analysis: The support level at $0.14 is crucial; a drop below may trigger a larger decline. Resistance and target is to break the 20-day moving average, with the price expected to reach $0.26. Exchange net flow: There has been a net outflow in the past two weeks, indicating that investors are accumulating DOGE, which is favorable for long-term holding.
The future of Musk and Dogecoin
The market is abuzz about whether Dogecoin and XRP will integrate with Elon Musk's X platform. Musk plans to develop X into a 'universal app' to facilitate financial transactions. As a long-time supporter of Dogecoin, whether he will include DOGE in the platform is worth anticipating.
On-chain data insights
Days Until Destruction (CDD): On June 14 and 17, the trading volume of old coins surged, suggesting that some holders may be selling, but a sustained trend has not yet formed, making it difficult to determine whether it is entering a surrender or profit-taking phase.
Cost Basis Distribution (CBD): The range of $0.182 to $0.211 has dense supply, leading to strong supply-demand competition. If prices rebound, panic holders may exit in this range, limiting further gains.
Historical trend reference
From August to September 2024, Dogecoin briefly fell below a key demand zone but rebounded months later. Combined with recent net outflow data, a similar market situation may reoccur in the coming months. The rise in April and May could be a prelude to a larger rebound.
In the short term, Dogecoin may continue to fluctuate. Investors need to remain patient and watch for support at $0.14 and opportunities to break the 20-day moving average. Long-term holders should refer to on-chain data and respond cautiously to selling pressure. Movements on Musk's X platform should also be continuously monitored, as they may bring new opportunities for Dogecoin.
In summary, the future of Dogecoin is full of uncertainties, but its community vitality and market potential cannot be ignored.
