Summary: Dogecoin’s price rose on Wednesday following a decline in the overall cryptocurrency market, but the memecoin faces insurmountable odds in the current market.
Dogecoin’s price defied Wednesday’s broader decline in the crypto market, rising 1.6% and trading at $1.108 at the time of writing. DOGEUSD is at a potential inflection point, with price matching the 50 Exponential Moving Average (EMA) and approaching the 50 EMA level on the daily chart.
DOGE limited options
Global cryptocurrency markets are feeling the weight of geopolitical tensions in the Middle East, with investors taking a cautious approach. Risk-off psychology has reduced investors’ appetite for high-risk assets like cryptocurrencies. Market leader Bitcoin has been flat for most of the past five days and was on track to post its third consecutive daily decline on Wednesday.
Dogecoin’s price lacks the institutional support it once had, which plays a key role in limiting its rise. During the last cryptocurrency market rally in 2021, multiple institutions integrated DOGE as a payment option, and the resulting enthusiasm drove retail adoption.
Also, the emergence of meme coin mania in 2024 has diverted some of the spotlight that was previously focused on Dogecoin and Shiba Inu. Meme coins such as PEPE, BOME, and WIF have provided investors with greater thrills than DOGE due to their higher volatility levels. As it stands, Dogecoin’s price upside will be limited unless the overall market spikes.
Dogecoin price prediction
The RSI momentum indicator for Dogecoin price is showing bullish control. If the pivot is 0.108, the upside could encounter initial resistance at 0.110. However, if momentum strengthens, DOGEUSD could overcome that hurdle and rise to a level that tests 0.113.
On the other hand, if the price falls below 0.108, it will be advantageous for sellers to take control. In that case, first support may be established at 0.105. However, if sellers gain more control, the downside could widen further. In that case, a break below the first support would invalidate the upward narrative and the second support could come at 0.104.
