• Dogecoin (DOGE) dropped on Thursday due to a mix of Fed tightening fear and SEC crackdown on US-based crypto staking services.
• DOGE/USD stabilized just above its 50-Day Simple Moving Average (SMA).
• Elon Musk’s decreasing engagement on Twitter has some analysts concerned that it might not be the silver bullet for Dogecoin’s recovery.
Dogecoin Price Prediction
Dogecoin (DOGE), the cryptocurrency powering the meme-inspired Dogecoin crypto payments blockchain, has seen its price predictions worsen after breaking out of an uptrend in late December 2022 earlier this week. On Thursday, a broad crypto sell-off triggered by Fed tightening fears and concerns about the SEC’s crackdown on US-based crypto staking services saw DOGE/USD stabilize just above its 50-Day Simple Moving Average (SMA) near the $0.08 level. This marks a 10% decrease on the week and close to 18% versus last Saturday’s highs at $0.10.
Dogecoin Price Prediction – Where Next for Dogecoin?
The bears have hit their short-term target of a test of the resistance-turned-support $0.079 level, meaning that some stabilization in the Dogecoin market is now likely, for a few days at least. Yearly gains are still up an impressive more than 60% from 2021 lows under $0.05, with hopes that serial entrepreneur and billionaire Elon Musk might implement Dogecoin into a future payments system on Twitter keeping prices propped up versus 2022 lows. However, falling engagement on Twitter has some analysts concerned that this might not be enough to send prices back to all time highs as Musk appears increasingly frustrated over his decreasing reach on the platform.
Short Term Outlook
In light of this news and based off recent trends, it appears likely that in the near term, we will see another retest of $0.079 support and perhaps even a drop towards the 200 Day SMA at $0.077 before any potential recovery back towards recent highs in the 0.$10 area happens again.
Impact of US Inflation Data
The direction DOGE takes next could largely depend upon upcoming US CPI data which is expected to come out next week – if it comes in softer than expected then this could provide much needed relief for DOGE holders looking to get back into profit territory again soon!
Overall, while there are still many factors driving sentiment around Dogecoin markets right now – including Elon Musk’s involvement with Twitter – investors should keep an eye out for upcoming US inflation data as it may provide clues as to where we can expect DOGE/USD prices to move next in either direction!