In the midst of a rapid swing between Polkadot (DOT), Terra (LUNA), and DOGE, Dogecoin (DOGE), a cryptocurrency project that started as a joke but has now taken on a much more powerful personality, continues to compete for a place in the top 10 cryptocurrencies by market capitalization.
Last year, Dogecoin went through two bullish phases. While the first phase was triggered by Robinhood’s adoption of the meme coin, the second was led by Tesla CEO Elon Musk, who earned the nickname “Dogefather” for his unwavering support of Dogecoin. Many observers believe the “Elon Musk effect” is the only bullish thesis for Dogecoin because Musk’s persona has such a strong influence on the outlook for the meme coin. Now, the creator of Litecoin has praised the meme coin, calling Elon Musk great.
Meme Coin praised by Litecoin founder
Charlie Lee, the founder of Litecoin, one of the most valuable cryptocurrencies by market cap, praised Dogecoin, a popular meme coin, for its contribution to mainstreaming the crypto business.
Charlie Lee, in a recent Bloomberg interview, described Dogecoin as “big” and “pretty funny.” He thinks the most popular cryptocurrency meme is poised to attract a large number of new users. Given the role they both played in bridging the gap between the cryptocurrency industry and the general public, his praise for Elon Musk and Dogecoin is expected.
On his Twitter page, SpaceX CEO Elon Musk has discussed digital assets multiple times. On top of that, his electric car company, Tesla, now takes Dogecoin as a form of payment for its assets.
Dogecoin’s price has suffered a setback
DOGE plunged 35% after starting to fall on January 16 and remained below the December 4 low of $ 0.128 until last week. After the dip, the token consolidated around the $ 0.14 demand zone, and continued buying momentum over the next 24 hours could push the price down to the 50-day simple moving average (SMA) at $ 0.16. There is also the possibility of reaching $ 0.194, which is where the 100-day SMA is.
However, cryptocurrency investors who bought at the highs haven’t fared well in the past nine months. According to data from CoinMarketCap, the price of Dogecoin has plummeted by 81% since May 8. 1 Doge is currently worth 14 cents.
Dogecoin’s market cap is $ 18.2 billion. Source: TradingView
Despite the decline, the dog token still has a market cap of $ 19 billion, which represents 1.1% of the entire crypto market. The price of the Dog token is expected to hit $ 0.16 this week, according to FXStreet. This is a 15% increase over the current price. From January 16-22, Dogecoin was down 35% in 6 days, according to FXStreet. However, since then:
“DOGE produced a sideways move indicating a consolidation around the $ 0.14 barrier. Any short-term buying pressure spike is likely to push the Dogecoin price up 15% to $ 0.164. This level coincides with the 50-day simple moving average (SMA) ”.
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