Here’s Where the Dogecoin (DOGE) Price Could Go This Week

The DOGE price is entering the new week with traders focused on one key question: can Dogecoin hold its most important support level, or is another drop around the corner?

The crypto currency has slowly lost a significant amount of its strength gained throughout April and the early stages of May. Currently, DOGE is changing hands at around $0.1005, just above a key level which has been instrumental in determining its recent price movements.

In what can be described as a contradictory scenario, the technical picture on a shorter time frame is weakening while the overall narrative surrounding the coin is getting better and better due to ETF inclusion and increasing institutional participation.

• Factors Driving DOGE Price Right Now
• Here’s What the DOGE Chart Is Showing
• Where Could DOGE Price Go Next?
• FAQs

Factors Driving DOGE Price Right Now

There has been no shortage of positive developments around Dogecoin this year. One of the biggest was the launch of the 21Shares Dogecoin ETF on Nasdaq. This product allows traditional investors to have a regulated path to participate in DOGE investments without having to worry about wallets and custody issues.

On the other hand, Dogecoin has been officially classified by regulators in the United States as a digital commodity alongside Bitcoin and Ethereum. The reason why this is important is that this removes the biggest uncertainty surrounding Dogecoin.

Another story attracting attention is a proposal that could dramatically reduce the rate at which new DOGE enters circulation. Dogecoin’s current design adds 5 billion new coins every year, creating annual inflation of about 3.3%.

This proposal put forward to the community will lead to a reduction in the block reward from 10,000 DOGE to 1,000 DOGE. This means there will be a reduction in the amount of DOGE issued in a year by 5 billion DOGE to 500 million DOGE. However, the proposal is not even close to being implemented.

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Here’s What the DOGE Chart Is Showing

We had a look at the DOGE chart, and everything comes back to one level: $0.100. That price acted as resistance for most of March and early April. Buyers spent weeks trying to break through it before finally succeeding.

Once they did, the DOGE price climbed from around $0.094 to nearly $0.120, producing a rally of roughly 28%. Since peaking in early May, however, DOGE has been moving in the opposite direction.

Source: TradingView

The DOGE price has dropped around 16% from its highs and has now returned to the same breakout level that started the rally. Traders often pay close attention to these retests because they can determine whether a breakout was genuine or whether it turns into a failed move.

The moving average is sitting around $0.104 and has started pointing lower. The DOGE price remains below it, which means sellers still have the upper hand in the short term. Momentum indicators aren’t offering much help either.

Volume also remains fairly ordinary. The rally in April was supported by strong buying activity, but the recent decline hasn’t produced the kind of heavy selling volume that often marks a major bottom.

Where Could DOGE Price Go Next?

The following actions depend very much on how things will unfold around $0.100. If bulls keep defending this level, the DOGE price might try to push higher towards the first resistance level at $0.104, which coincides with the 100 SMA.

In this case, bulls can push higher to $0.108-$0.110 and even revisit their highs from May at $0.115-$0.120. However, this would be possible only when bulls retake the moving average and form better volume compared to the current rebound attempts.

On the bearish side, things look clearer. The breakdown under $0.100 and lack of quick rebounds would mean that bulls have lost all of their gains, with bears eyeing the support levels around $0.093-$0.095. This level was critical to the whole April rally.

At the moment, the technical evidence leans slightly toward caution. DOGE remains below a declining moving average, momentum indicators are neutral, and there are few signs that sellers have fully stepped aside.

FAQs

 **Is Dogecoin only a meme coin❓**

Dogecoin started as a meme-inspired cryptocurrency, but it has developed a large user base, growing infrastructure, institutional investment products, and increasing real-world payment adoption.

 **Is Dogecoin still inflationary❓**

Yes. Dogecoin currently adds about 5 billion new coins to circulation each year, although the inflation rate gradually declines as the total supply grows.