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Dogecoin’s recent market performance sparks discussions on its future investment potential amid fluctuating prices and uncertain global economic conditions. Analysts recommend cautious optimism, highlighting the importance of broader market trends.
After monumental success this month, market participants eagerly await Dogecoin’s next move, contemplating whether it will continue to explode or cool off.
Currently, Dogecoin is trading at $0.1298, up 0.69% today, down 23% this week, and up 50% this month – but is now the right time to invest?
Dogecoin looks bullish, but traders should await bottom signal
After a meteoric run over the since late February, Dogecoin has experienced a deep retracement, stoking concerns that further downside may be on the horizon.
Currently, DOGE is trading above its bear market resistance, which also acted as support in the selloff that followed its 2021 ATH.
The current weekly candle tapped the level and is now forming a wick as it rejects.
However, with over four days until the candle closes, traders should remain cautious in case the retest fails.
This is exasperated by inconclusive macroeconomic conditions, with the Bank of Japan recently raising interest rates for the first time in 17 years and the United States Federal Reserve holding its FOMC meeting today.
The meeting’s results will likely impact the crypto market’s upcoming trajectory.
Any speculation of future rate increases or a prolonged pause at the current 5.5% level could plunge prices, causing a support breakdown for Dogecoin.
However, the upcoming Bitcoin halving and four-year cycle theory indicate crypto remains bullish on a higher time frame. Still, analysts expect Dogecoin to consolidate before an uptrend continuation.
“DOGE broke its macro downtrend. It was successfully retested as support two weeks ago. It is still dipping & so technically still in the retest phase while also moving sideways within a new macro range ($0.12-$0.20). The retest phase is still in progress,” said Rekt Capital in a recent post on X.
The analyst believes Dogecoin’s current trading range is between $0.12 and $0.20. However, bulls must defend the support to maintain this bullish outlook.
Crypto Poseidonn holds a similar stance, stating that any deeper retracement “is a gift.”
Still, the trader remains open to a potential sell off to $0.1, over a 20% decrease from its current price.
Therefore, value-seeking traders may be better equipped by awaiting a trend reversal confirmation, ensuring they attain the best price.
But while Dogecoin undergoes a consolidation, new meme coin Dogecoin20 is racking up pace, surging past $3.5 million in six days of presale.
Could Dogecoin20 be a better buy than DOGE?
When software engineers Billy Markus and Jackson Palmer jokingly created Dogecoin in 2013, they did not anticipate it would become a globally recognized sensation and symbol of resistance against exploitative TradFi practices.
Still, its nonchalant inception left dents in its armor, drawbacks that limit its potential. This is why a team of savvy devs launched Dogecoin20.
Overhauling the godfather meme coin with tools and tokenomics for lasting success, Dogecoin20 has fared an unprecedented hit since its launch.
Its most anticipated feature, Stake-to-Earn, invites users to generate passive rewards while ensuring the ecosystem’s security and stability. Currently, they can garner a 248% APY, but this decreases as more tokens are staked.
The project also boasts a capped supply of 140 billion $DOGE20. This encapsulates the “sound money” essence forged by Bitcoin, staving off inflation and price dilution.
In comparison, Dogecoin holds an unlimited supply, rendering it a sub-optimal store of value.
Another advantage of Dogecoin20 is that it aims to tackle climate change. It will launch on Ethereum, swapping out Dogecoin’s Proof-of-Work for the greener Proof-of-Stake consensus mechanism.
Currently, investors can buy $DOGE20 for $0.000202, but this will rise throughout the presale with the next increase when the total raise hits $4 million.
Adding to the urgency, the presale has a $6 million hard cap, so potential buyers should act fast to avoid missing out.
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This article first appeared at crypto.news
