Dogecoin has been on a steady decline in July, but this week shows positive gains for the coin. The recent upswing comes from the recovery of the broader market after bitcoin managed to clinch $32K and ethereum pushed to $1900.
Dogecoin is trading at $0.19 at the time of writing after a 6.1% gain.
Dogecoin Price Analysis
For the major part of this month, dogecoin has been on consolidation before volatility spiked, and the coin started clinching new lows. However, despite the downtrend, dogecoin managed to stay above the $0.16 support, which prevented the coin from undergoing a steeper correction.
Over the past 24 hours, DOGE has spiked because of increased buying pressure. If buying and market support continue at this level, dogecoin will head towards a potential breakout past $0.20. The market support is currently strong, and this is favourable towards DOGE bulls.
Conversely, DOGE could also fall to lower levels if it fails to hold above the $0.16 support level. A retreat to below $0.16 could increase selling pressure for DOGE, in which case, dogecoin could be headed towards a 40% decline to around $0.095.
Elon Musk spoke lightly about dogecoin during the B Word conference organized by Jack Dorsey and Cathy Wood. In his comments, Musk argued that dogecoin’s smaller block sizes placed it in a position to compete with bitcoin. However, Musk’s effect on cryptocurrencies seems to be dying down since he is not causing significant gains as he once did in May.
The B Word Conference is also one factor that has caused an increase in bitcoin and ethereum prices, hence a recovery in altcoin prices.
Coinbase, one of the leading crypto exchanges, is facing a lawsuit over a misleading dogecoin campaign. The $5 million class action lawsuit against Coinbase claims that the exchange knowingly misled investors to make $100 deposits on a doge contest in June as a way of boosting liquidity. However, the exchange withheld information about an alternative free method of entering the contest.
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