Dogecoin is not performing very well this month, given that it has failed to register new highs. Elon Musk stepped to dogecoin’s aid last week through a tweet, but the upswing from that tweet was short-lived, given that dogecoin fell afterwards and failed to maintain the uptrend.
At the time of writing, DOGE is trading at $0.203 on major exchanges after a 5.3% drop in 24 hours.
Dogecoin Price Analysis
DOGE bears seem to be gearing up, given that the token has lost a large proportion of its value in the last 24 hours. Currently, DOGE is trading at a very critical level, given that a slight slump below $0.20 will signal that stronger bears are on the way.
DOGE will go below $0.20 if there is a lack of market support and if buyers jump in to dump their holdings to avoid more losses. Currently, bitcoin has managed to hold the $33K level, but ETH is trading slightly above $2000. If these two largest cryptocurrencies drop from their current levels, we might witness a slump in dogecoin prices.
On the other hand, this decline in dogecoin might have created the ideal entry position for those traders who want to buy during the dip. Hence, we might witness dogecoin consolidating at around $0.22. Moving past $0.25 will only happen if there is support from the entire market.
The current decline in dogecoin’s prices signals one of the largest volatilities in this market this month; hence holders need to be cautious.
Elon Musk has come under criticism for his recent attack on bitcoin and ethereum. Recently, Musk stated that Bitcoin and Ethereum networks were not scalable enough; hence dogecoin held merit over these cryptocurrencies.
The dogecoin upgrade that Musk is supporting will be done in collaboration with litecoin. Litecoin is the parent blockchain of DOGE, and a merge will have a heavy impact on the network. Gabor Gurbacs, the digital director of VanEck, expressed concerns over the matter in a tweet response to Musk.
Elon criticizes Bitcoin and Ethereum base-layer transaction rates and costs and says doge has merits on those fronts. He forgets to mention that Dogecoin is merge-mined with Litecoin. Seems like an important fact to miss. lol We live in a simulation. https://t.co/tYAOKRXlN3
— Gabor Gurbacs (@gaborgurbacs) July 9, 2021
While the upgrade is expected to raise dogecoin’s prices because of the hype surrounding it, we might witness a long-term effect from it.
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