Even with the weak price action, there are still a few catalysts that could help DOGE recover. ETF developments, a proposal to reduce Dogecoin’s inflation rate, and continued ecosystem expansion are giving bulls reasons to stay optimistic.
DOGE Price Is Testing a Critical Level
The biggest question this week is whether buyers can keep defending the $0.079-$0.084 support zone.
We analyzed the daily chart, and overall, the trend continues to be bearish. The DOGE price is now trading at $0.08573, which is below the 100-day simple moving average of $0.09738. DOGE has been trading below its simple moving average for over a year now, confirming the sellers’ dominance in the higher timeframes.
That said, momentum is not completely weak as well. The relative strength index stands at 36.66, indicating that the DOGE price is in a zone of oversold conditions without being too far from becoming extremely oversold. This creates some potential for a recovery if buying activity persists.
Assuming that price stays above support, the next goal is to test the $0.085 level and the declining 100-day SMA at $0.09683 level. If this happens, DOGE may reach the psychological resistance level of $0.105 and even climb up to $0.115, which is the last level where momentum becomes weak.
Read Also: We Gave 3 AI Models the Same Dogecoin (DOGE) Chart – Here Are Their Price Predictions
Institutional Interest and Factors Driving the Dogecoin Move
Beyond the charts, Dogecoin’s monetary policy is becoming a major topic of discussion. A proposal made by developers on GitHub indicates cutting down the block reward to 1,000 DOGE from the current 10,000 DOGE per block.
The move would mean decreasing annual coin supply to 500 million DOGE from an estimated 5 billion DOGE, and thereby inflation would come down to 0.3% from an approximate 3.3%. Despite being yet to get widespread support and a hard fork, many believe that decreased inflation can work out favorably for Dogecoin price in the coming years.
How High Can the Dogecoin Price Go?
The answer depends on whether buyers can defend support over the next few days. Staying on the positive side of the $0.079-$0.084 area might enable the DOGE price to climb back to $0.09683, followed by a move to $0.105 and $0.115.
These levels will reflect a significant recovery following the price drop of more than 33% from the peak of this month close to $0.120. Failure on the upside can change the whole picture, causing Dogecoin to fall into the range of $0.070-$0.065 and intensifying the ongoing correction in the last several weeks.
