Dogecoin price paints a somewhat indecisive outlook as bearish sentiment looms, leaving enthusiasts wondering what the leading meme token might showcase in the upcoming session.
The latest crypto market dip sent shockwaves through the Dogecoin community as the alt breached a crucial support floor that historically triggered recovery rallies. The development raised worries about continued price dips, but recent actions show DOGE could be readying for a new upsurge.
For instance, the altcoin has secured support at $0.06. That catalyzed a slight recovery early on Monday (as it benefited from improved sentiments in the broad market) before retracing.
Ongoing market volatility left Dogecoin at $0.061801 at press time, indicating a 1% 24-hour plunge. DOGE lost 0.6% within the last seven days.
Looming bearish threat
While recent price actions could be impressive, Dogecoin remains susceptible to possible selling pressure. The meme token might witness bearish momentum if sellers dominate around the $0.064 value area. That might welcome a 10% price dip, pushing Dogecoin towards $0.057.
DOGE creator Billy Markus responded to a user highlighting the faded community engagement, stating,
“The community has been dead in my opinion for over a year the most active people just make drama and attack people.”
Further, Dogecoin struggles with utility. Despite being the top meme token ($8.7B in market cap), DOGE remains a pure digital coin without other substantial use cases. Support from prominent individuals such as Elon Musk helped the project grow through X (former Twitter) conversations.
Despite its impressive market share, Dogecoin’s poor tokenomics (such as infinite token supply) limit its longer-term growth. DOGE developers will have to find ways to reduce the current 141B coins in circulation to ensure scarcity for increased demand and potential price surges in the future.
The cryptocurrency community has been speculating about X integrating DOGE for payments on the leading social media platform. Also, trading platform Robinhood added Dogecoin to its self-custody web3 wallet recently. Such developments might seen Dogecoin gaining institutional appeal, translating to explosive growth.
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