Alongside its own success, Dogecoin has paved the way for other meme-based projects such as Shiba Inu (SHIB), Dogelon Mars (ELON), and Floki Inu. However, it maintains its position among the top 15 despite other strong competitors and the market recent sales. But will the leading meme coin be able to do more? 2 analysts list the catalysts for this.
Dogecoin price and short-term outlook
Dogecoin is poised for a 60% rise after breaking the largest trading volume level at $0.0665 on Aug. Secondary confirmation came after breaking above a key downtrend line on August 7. As a result, the Dogecoin price has gained 7% so far. It shows signs that this trend will continue to $0.110, i.e. the midpoint of the $0.0497 to $0.170 range. However, to reach this short-term target, DOGE needs to clear the intermediate resistance level at $0.0776.
However, this development for Dogecoin will fail if the control volume of $0.0665 turns into resistance. One reason this happens is because traders are pushing the market down to collect the remaining liquidity at $0.0573. Even if the Dogecoin price pulls back, bulls are waiting for opportunities in the $0.0480 to $0.0577 demand zone. This, along with macro developments, keeps the expectations of the leading meme coin high.
Preliminary warning of DOGE’s macro view
Although the short-to-medium-term outlook for Dogecoin price looks bright, a break of the $0.0417 support level will signal a bear invasion and trigger a massive sell-off. According to analyst Akash Girimath, this scenario is not supported by the weak demand zone stretching from $0.0413 to $0.0140. These areas are formed when a coin is rapidly moving away from a certain direction. Such a move would involve a 70% drop from the $0.0417 support level.
Regardless of the inefficiencies, if Dogecoin price stays above the falling trendline at $0.0820, it will indicate a resurgence of major bullish pressure. In such a case, the bearish thesis will have to wait for the bulls to take control. In this case, the analyst thinks Dogecoin will run at the 0.109 and 0.181 levels, depending on the extent of the bullish momentum.
So how will the leading meme coin get rid of these negativities?
DOGE potentially has more apps than Cardano
Billionaire investor Mark Cuban has narrowed down why he believes Dogecoin has more potential applications than Cardano despite being a smart contracts platform. In an interview with Altcoin Daily, Cuban explained that he does not think the market cap accurately represents the value of crypto projects.
Cuban has this to say about Cardano’s place in the top ten cryptocurrencies:
If you stake enough and have enough inflation and enough that people don’t sell too much, you have a large enough market cap.
Shark Tank investor returning to Dogecoin calculated that “DOGE potentially has more applications than Cardano.” “Until DOGE becomes a referral platform, the opportunity is greater for Cardano,” he added.
Elon Musk factor
Dogecoin’s affinity for Elon Musk is not black and white; is a gray area. His involvement with the project has generated extraordinary excitement in the past and carried its value to the moon. While some investors have made a fortune, many have been caught in frequent price corrections, resulting in huge losses.
The good thing is that Musk’s involvement in the project confirms Dogecoin as a solid crypto project – it’s not just about memes and jokes. The billionaire once called himself a “dog dad” and promised to help develop the network’s technology. While Musk believes that Bitcoin excels as a store of value, Dogecoin triumphs in transaction capability.
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