- The Dogecoin community has eagerly anticipated the integration with the Elon Musk-backed X platform to improve its utility and overall liquidity.
- DOGE price against the US dollar has been retesting the macro bullish breakout and could soon rebound toward an all-time high.
Dogecoin (DOGE), the largest meme coin backed by Tesla CEO Elon Musk, has flashed short-term bearish signals. The large-cap altcoin, with a fully diluted valuation of about $18 billion and a daily traded volume of around $588 million, has struggled to rally above the resistance level of about $0,127 in the past ten days.
While the meme lord has been consolidating horizontally on the daily time frame in the past two weeks, several indicators point to further weaknesses before the inevitable rally towards the all-time high. In the daily time frame, DOGE’s price against the US dollar has traded below the 50- and 200-day Simple Moving Averages (SMAs), a popular characteristic of a bearish trend.
However, Dogecoin’s bearish trend could end soon as the daily Relative Strength Index (RSI) hovers around the oversold levels.
Why Bet on Dogecoin Price Recovery?
The Dogecoin network has remained the most popular meme coin in the crypto industry despite the emergence of hundreds of new similar projects in the past few years. The proof-of-work (PoW)-secured blockchain has attracted notable attention from institutional investors and retail traders due to its deep liquidity and mining incentives.
As Crypto News Flash previously pointed out, the Dogecoin community has eagerly anticipated integrating with the Musk-backed X platform. Moreover, the X platform has obtained over 20 money transmitter licenses in the United States as it prepares to launch its payment services.
The Dogecoin price action has largely mirrored that of other top digital assets – led by BNB, Ether, Solana, and Bitcoin – thus signaling an inevitable parabolic rally ahead.
When DOGE ETF?
The recent approval of spot Bitcoin and Ether ETFs in the United States has ushered in a new era of Wall Street crypto adoption. Earlier on Thursday, VanEck filed with the US SEC to offer a spot in Solana ETF, which could wait until the upcoming elections before the final ruling.
The Dogecoin community has grown to more than 7.3 million holders, including institutional investors. As a result, it is safe to assume that a Dogecoin-based spot ETF is on the horizon, especially fueled by Musk’s support.
Midterm Price Target
Amid the ongoing crypto correction, DOGE price has slipped more than 23% in the past four weeks to hover around 12 cents at the time of this report.
Ultimately, the DOGE price will establish a bullish momentum, which could happen in the coming weeks. Moreover, the crypto industry has enjoyed a bullish outlook in July for the past five years.
The meme lord has seen its futures open interest gradually decline from around $2 billion in March to about $578 million in June. With the ongoing mass adoption of digital assets to flee high fiat inflation, it is safe to assume Dogecoin will reach its ATH soon.
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