Dogecoin price analysis: is there still hope that it will rise again?

The crypto market continues to be in trouble as Bitcoin continues to push almost all other cryptocurrencies lower. The price of Dogecoin does not escape from this tide, which leads us to carry out this analysis to find out if it will be possible for it to recover soon.

After a tremendous year 2021, DOGE has fallen more than 75% from its all-time high of $ 0.75.

At the time of this writing, cryptomeme is trading at $ 0.17, accumulating a loss of 3.31% in the last 24 hours and 11.86% in the last 7 days. Its market capitalization is $ 22.55 billion, making it the 12th largest cryptocurrency.

Dogecoin publishes its roadmap 8 years after its launch, but the market does not respond with enthusiasm

The year that just passed was undoubtedly the best for meme-based cryptocurrencies such as DOGE and SHIBA; But after the bubble and its burst, it seems difficult to get investors to regain their appetite for extreme risk.

The developers behind Dogecoin are trying to regain morale in the cryptocurrency market, publishing a roadmap to make this coin more than just a joke.

After 8 years of having seen the light, now DOGE could start to see advances to expand its range of use cases. Even so, it seems that investors are not very keen on investing in this project, at least for the moment.

The roadmap talks about the development of a new website, a wallet called GigaWallet, a possible ability of this blockchain to coin NFT, and obtaining collaboration from Vitalik Buterin to implement a Proof of Stake protocol.

Without a doubt, this is news that could promote positivism in the market for this cryptocurrency. But, for now it has not happened. It seems like we need to see a Bitcoin rally first, fueling excitement across the crypto ecosystem.

Dogecoin technical analysis

In the daily chart DOGE vs USDT we see that the price of this coin has been closing in on a strong side with support at approximately $ 0.16 and resistance at $ 0.19.

Breaking through either extreme could herald a major move next, in the direction the range was traversed.

At the moment, it seems more likely that the price of Dogecoin will escape from the bottom, as the previous trend is down.

However, we see that below there is a fairly relevant demand area, where we could well see sales being slowed down, and even a possible beginning of a strong recovery.

Analysis of the daily chart of the price of Dogecoin. Source: TradingView.
Analysis of the daily chart of the price of Dogecoin. Fountain: TradingView.

The bullish force is still dominant

After doing an analysis of the weekly Dogecoin price chart, we can conclude that bulls are still the dominant force.

Although the price has fallen more than 75% from its all-time high, if we look to the left the strength of this fall is totally overshadowed by the bullish rally of previous months.

It is still feasible that the price is making a normal and necessary correction, before returning to its previous trend.

We see that the price reached the area around 78.6% of the Fibonacci retracement tool, and from there it has remained defending a support close to $ 0.16.

If this continues, the current point could be the bottom of the decline (or almost), before resuming the trend.

To confirm that this will be the case, the price must start to make higher and higher lows and highs.

As long as that does not happen, Dogecoin will remain in danger, and if it loses $ 0.16, a rather worrying drop could follow, as the ground will be clear to $ 0.08. But for now, this is an unlikely scenario.

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Dogecoin price analysis: is there still hope that it will rise again?

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