If the Dogecoin price drops below $0.155, it might go further to $0.08. On the other hand, Elon Musk’s recent tweet might encourage the bulls to grab some Dogecoin at current price levels and make its price surge to over $0.21.
Dogecoin is currently trading at $0.191 which is just above its strong support level of $0.16. This price point is very important for Dogecoin, as it prevented a steep downward trend of the coin over 4 times within the last year. For this reason, both bulls and bears should be extremely cautious as a correction of more than 50% could occur at any moment.
Another project which might breakout in 2022 is EverGrow Coin. Within just 10 weeks of a launch, EverGrow holders have already received their share of over $30 million in rewards – a record-breaking achievement for such a young project. EverGrow has a suite of planned utilities, including an Exchange and Crypto Wallet, NFT Marketplace and Lending platform, Oracle-based Play to earn games, and content creation platform, all are planned to launch in 2022. These utilities will play a huge role in generating ‘rewards’ for EGC holders in the form of Binance pegged USD, a regulated stablecoin.
Analysts have calculated that if EverGrow’s volume reaches $30 million per day. Based on the current market cap of just $300 million, those investing $10K today would receive rewards of $750 per day. Currently, EverGrow is available to buy from various decentralized exchanges based on the Binance chain.
Dogecoin Price Analysis
Over 2021 we have seen that there is a huge gap existing between $0,16 and $0,086 and $0,078 and that Dogecoin’s point of control (POC) is around $0,052. This tells us the trading volume of Dogecoin was the highest this year at that price. For this reason, the forecast for Dogecoin is not only backed up by volume data but also by technical data.
Then we have Elon Musk’s tweet on December 14th added to the equation. This obviously caused bulls to increase buying pressure and even resulted in a huge increase in the Dogecoin price of more than 40%. It almost seems as if Elon carefully planned this exact moment to tweet, as he sort of saved Dogecoin from dropping in value like a brick. The only thing he needed to do to prevent Doge from losing half of its value, was say Tesla would make some merchandise buyable with Dogecoin.
As for now, Dogecoin holders are in the clear zone with a price of $0,172 but if the day closes below $0,16, this could be the start of a drop to $0,12 and potentially even further towards $0,085. When we take a look at on-chain metrics, we cannot do anything else than confirm this potential scenario. Data shows us very little support all the way to $0,074, which is even lower than the technical predicted target level.
At this price, there are over 285,000 wallet addresses that bought more than 2,5 billion Dogecoin all together ‘’in the money,’’ which will likely grab some more tokens to try to maintain their profits. Furthermore, we see reduced on-chain trading volume on Dogecoin’s blockchain. The reason for this could be the relatively new tokens like Shiba Inu, Solana Dogecoin, and other dog-typed meme coins.
On the other hand, if Bitcoin would increase in price over the next couple of hours and drag Dogecoin with it, we might see the bulls gaining a support floor above $0,18. If this scenario occurs, it invalidates our bearish thesis and Dogecoin could swing as high as $0,215 at the end of the day.