Key Takeaways:
- Dogecoin could lose another 5% in the upcoming sessions
- The meme coin has been trading withing a rising channel
- Elon Musk shilled DOGE again by reiterating his intentions to use it as crypto payment on Twitter.
YEREVAN (CoinChapter.com) – Dogecoin (DOGE), the pet crypto of multi-billionaire Elon Musk, soared 15% on Jan 30-31, backed by Musk’s continuous narrative to use DOGE for crypto payments on Twitter. However, the rally fizzled out on Feb 1, and the canine coin lost 7% since, settling at $0.09 in the Asian-Pacific session. Could DOGE lose more, or will it hold the support?
DOGE charts hint at a 5% drop
Dogecoin Price prediction is tricky, as the alpha meme coin is highly volatile. Moreover, Dogecoin news is primarily dependent on Elon Musk or other proponents shilling the coin on social media. In the meantime, the DOGE four-hour chart flashed a correction warning, forecasting a 5% drop ahead.
In detail, the meme coin traded within a ‘rising channel’ formation year-to-date. The setup features two rising parallel trendlines with a significant mid-range. The channel prevented sharp moves through consecutive support and resistance retests and can still be instrumental for short-term predictions as long as it remains relevant.
Doge Price Prediction
DOGE retested the resistance after peaking on Jan 31 and dropped to the mid-range on Feb 1. If the meme coin holds the mid-range support, it could get another bullish kick from traders and pick up to the mentioned peak. However, the declining trading volumes on the 4h chart don’t spell success.
Thus, if the bearish Dogecoin price prediction is correct, the token could shave another 5% off its value. In that case, DOGE will end up at the channel’s support shortly, at the price target of approximately $0.08.
Also read: FOMC Meeting: Fed likely to hike interest rates by 25 bps – but recession fears persist.
Meanwhile, the Dogecoin news behind the rally is still noteworthy.
Dogecoin Price depends on Twitter and Elon Musk
As mentioned, the meme coin pumped nearly 15% on speculation the meme coin could be a part of Twitter’s revenue stream. The rumors stemmed from a Financial Times report claiming that Musk is exploring the opportunity of tying DOGE to the crypto payments on Twitter.
Moreover, a rumor that Dogecoin could switch to proof-of-stake circulated the Twitterverse, boosting the hype around the meme crypto. A DOGE core developer brushed it off as gossip and urged people not to take the word of “crytpo influencers” who claim to have inside access to the goings on at the platform.
In a lengthy thread, @michilumin insisted that “It is not possible for, nor is it planned for, an individual, organization, or body to “move,” “shift,” or “change” dogecoin to PoS.” They also confirmed that there is “not a “plan” to “move” dogecoin to PoS.”
…dogecoin runs on consensus; always has, always will. I suggest people go back to their roots and look at the *fundamental concepts* behind a consensus-based blockchain and how it works. If you don’t believe it, sorry, not much more I can say on the matter.
said @michilumin on Dec 29.
Also read: Flow Token Price Rises 67% In Jan On Bullish Developments.
