Is Dogecoin a meme cryptocurrency in reality, or is it holding weight in its technology development? Dogecoin’s uptrend has faced a major bottleneck since Elon Musk announced the purchase of Twitter, which confirms the strong influence of Elon Musk on the cryptocurrency market, especially Dogecoin. Despite facing rejections from the FTX fiasco, Dogecoin consolidated and gained 50% in November 2022 before starting to lose ground. December 2022 hasn’t brought any good news for Dogecoin enthusiasts, as transaction volumes are declining.
Market capitalization for Dogecoin remains on the positive side of $12.75 billion, rankings the cryptocurrency at the 8th spot. The outlook for this cryptocurrency has indeed remained stronger despite being little no-movement-worthy news for this cryptocurrency. The outlook for Dogecoin dominating the markets remains low in 2022. Still, the prospects have sustained the ups and downs of the market, highlighting the need for decentralization as centralized cryptocurrencies are facing severe flak.
Dogecoin (DOGE) Price Analysis
Dogecoin faces major resistance at the $0.11 level creating a downtrend as buyers make away with their investments. Technical indicators confirm the beginning of a selling scenario, but support is available to counter the pressure near $0.0730 and $0.0620.
The consolidation phase of November, after a decline to $0.07, would be a strong supporter of the current price action. When RSI and MACD both have declined, with negative trends being highlighted through multiple indications, it would be tough for Dogecoin holders to sustain market swings to previous lows.
The rejection at the $0.11 level has been almost instantaneous that continues to create negative pressure instead of consolidating. The RSI indicator trading at level 50 on the daily candlestick pattern confirms a stronger reaction even during the rejection phase. Buyers can witness a V-shaped recovery from the 200 EMA curve, which is still 8% away from the current value.
On the contrary, the previous rejection from the $0.14 level creates the impression of Dogecoin being able to reach at least 40 to 50% gains from the current level under the positive impact of a new year. The regression trend on weekly charts showcases Doge to be trading in the positive territory as a negative territory would begin only after $0.0912.