Dogecoin holders have not been experiencing much growth in recent weeks, given that the price of the token seem to be consolidating at the same levels. Despite this limitation, some investors are still buying, with hopes that prices will appreciate soon and new highs will be achieved. Elon Musk has also come back to show DOGE support, hence the current rally.
At the time of writing, DOGE is trading at $0.224 on major exchanges after a 4.8% gain in 24 hours.
Dogecoin Price Analysis
Lately, dogecoin has been trading between $0.20 and $0.25, showing that market volatility is low. However, the slight ups and downs have retested critical support level, and if doge fails to maintain an uptrend in the coming days, we might witness dogecoin bears.
DOGE failed to reach the $0.25 resistance level in the past 24 hours despite the slight gains. To reach this level, dogecoin will need market support. Following an overnight $100 billion loss in the crypto market after bitcoin lost $2K, the current support may not be enough for doge to break past this level.
If market support fails, DOGE might retest the $0.20 support. Going below this support might reestablish bulls especially if investors choose to sell the token in order to minimize their losses. A downward trend might reestablish a new support zone at $0.15.
On July 9, crypto YouTuber, Matt Wallace took to Twitter stating that the upcoming dogecoin update will give the currency a competitive edge in being one of the most used cryptocurrencies in the world.
Reminder: The Dogecoin update is coming soon! It will position Doge perfectly to become one of the most used currencies in the world.
— Matt Wallace ⚠️ (@MattWallace888) July 9, 2021
Elon Musk was quick to jump in and give support to Wallace’s sentiments. This could be behind the current doge rally.
In a tweet response to Wallace, Musk stated that dogecoin has merit compared to bitcoin and ethereum in terms of speeds and transaction costs. Musk’s tweet is a reaffirmation that the Tesla CEO is still supportive of DOGE.
BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high.
There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.
— Elon Musk (@elonmusk) July 9, 2021
A dogecoin rally in coming days will be influenced by Musk’s recent gesture of support and the eagerly awaited update of the DOGE network.
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