Dogecoin Price Prediction: Will Whale Activity Drive DOGE to $0.5?

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DOGE/BTC Price Analysis: Will Dogecoin Outperform Bitcoin? – Crypto News

Published

2 years ago

May 31, 2024

Dripp

Investors have recently turned their attention to coins in the meme coin domain. The factors driving this move hinge on the ability of digital assets to achieve between 10x and 100x returns within a short period. Dogecoin, the king of this space, hovered at $0.16 during US business hours on Friday, approximately 185x its all-time low of $0.0000869 – CoinGecko data shows.

Bitcoin, on the other hand, is having a difficult time shaping its bullish outlook. The uptick last week, incited by the hype of the Ethereum ETFs approval pushed BTC to $72,000.

However, a correction followed amid increasing volatility and the lack of confidence in the uptrend on the part of investors. Bitcoin price sits at $68,723, maintaining a 0.8% increase in 24 hours.

DOGE/BTC Price Analysis: Dogecoin Establishing Support Ahead Of Breakout

The DOGE/BTC pair traded at 0.00000235, after a paltry correction from 0.0000255. Its immediate support is a confluence formed by the 200-day Exponential Moving Average (EMA) in purple and the ascending trendline.

On the upside, the DOGE/BTC pair was held hostage by another confluence resistance formed by the 20-day EMA in blue and the 50-day EMA in red. Until the pair breaks either side of this tiny range, sideways trading will continue.

DOGE/BTC price analysis chart | Tradingview

The correction could build momentum in the short term with the Relative Strength Index (RSI) slightly below the midline in the neutral area and forming a bearish divergence with the price.

Traders eyeing a larger move in Dogecoin price can watch out for a rebound from the trend line and the 200-day EMA. As DOGE gains strength against BTC, its dollar value will explode toward an all-time high of $0.7316.

Key hurdles that could make the journey difficult for traders start with 0.000026 and 0.00003.

Can Bitcoin Price Rally Ahead of US Inflation Data?

The sideways movement portrayed by Bitcoin this week has left investors bored and scheming for newer tokens to make quick gains. Such tokens include Notcoin (NOT), a viral game on Telegram, and GameStop (GSTOP).

However, the crypto market might be volatile as the US releases inflation data on personal consumption expenditure (PCE). This data will hint at the Federal Reserve’s anticipated moves on interest rates.

In the previous FOMC meeting, the FED left interest rates unchanged. Inflation eased in April based on the Consumer Price Index (CPI), released in early May.

Market watchers are looking forward to the first interest rate cut which remains uncertain in June. Economists are looking to September for the first cut. The Fed still has a long way to go to bring down inflation in the US to the target of 2%.

It is too early to tell if Bitcoin price can come out of the doldrums and move past $70,000. Such a development could ignite FOMO among investors, encouraging bets on a rally to $80,000.

Bitcoin has rebounded from support at $67,000 several times this week. If the correction continues, this level will try to absorb the selling pressure. However, the sell-off could continue to $65,000 before the next breakout.

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