Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
The price of Dogecoin (DOGE) fell below $0.09 on Monday, as bears drove a drop of 11% in less than 24 hours. However, on-chain data for Dogecoin suggests that buy orders currently outnumber sell orders on major exchanges. Will this result in a DOGE price rebound?
A Thriving Community
Dogecoin was founded in December 2013 as a cryptocurrency based on memes. The introduction of serious digital currencies at the time encouraged the development of this amusing alternative. Jackson Palmer and Billy Markus, two software developers, co-founded the project to create Dogecoin as a more accessible cryptocurrency than Bitcoin.
In addition to its support for clean water efforts and the Jamaican sledge team, the currency quickly gained a following. Despite its amusing origins, Dogecoin developed a particular charm by incorporating charity, community spirit, and internet culture.
The reason for Dogecoin’s phenomenal growth is its robust and passionate community. This group is well-known for its wit, inclusivity, and common ambition of mocking the significance of Bitcoin.
On social media platforms like Reddit and Twitter, fans built a sense of community by sharing memes, providing suggestions, and endorsing charitable organizations. This gesture attracted new members. This thriving community contributed to Dogecoin’s continued popularity and global acceptance.
Musk’s favorite coin
The advent of Dogecoin was crucial in preparing the ground for the present expansion of the memecoin arena. The cryptocurrency’s popularity truly took off when Tesla CEO Elon Musk started endorsing the coin.
Musk joined the Dogecoin bandwagon in 2019, primarily as a joke. However, over many months, his social media remarks about Dogecoin lent it more and more credibility. His earliest mention of dogecoin came on Twitter in April 2019, when he called it “my fav cryptocurrency.”
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
Elon Musk’s purchase of Twitter marked an iconic moment. As a result of Musk’s announcement, the price of Dogecoin appreciated by more than 100%. Since Musk-Twitter’s takeover, there have been speculations of incorporating and integrating Dogecoin with Twitter (Now, X).
However, it’s been months since and Musk has not made any updates on this front yet. Also, this hype didn’t last long as the memecoin’s price soon started lagging earlier in the year.
Musk and Markus Drama
Earlier this week, Billy Markus, the inventor of Dogecoin, also known by his Twitter name Shibetoshi Nakamoto, mocked market pessimists. Markus mockingly tweeted, “Oh no crypto died everything is dead blah blah blah.”
oh no crypto died everything is dead blah blah blah
— Shibetoshi Nakamoto (@BillyM2k) December 11, 2023
Applause erupted from the community, which included Elon Musk, popularly known as the DOGEfather. Dogecoin was trading at an annual high of $0.1020, at the time of this joke.
In response to Elon Musk, Dogecoin founder Billy Markus highlighted historical statistics demonstrating the regularity with which skeptics denigrate Bitcoin as worthless and forecast its collapse to zero during market downturns.
Green light for DOGE-1
In November, the National Telecommunications and Information Administration (NTIA) granted crucial regulatory authorization to the DOGE-funded SpaceX Doge-1 Moon Mission.
A few days ago, the Federal Communications Commission authorized the DOGE-1 Moon Mission for launch on January 12, 2024. The announcement was made by Doge Norway on X. He went on to say that the expedition was paid for in DOGE and that it is the first meme crypto in space.
SpaceX launching satellite Doge-1 to the moon next year, now i find january 12, 2024
– Mission paid for in Doge⁰– 1st crypto in space⁰– 1st meme in space
To the mooooonnn!! pic.twitter.com/izwhIZngu9— Doge Norway (@DogecoinNorway) November 28, 2023
The DOGE-1 satellite project was unveiled by the Geometric Energy Corporation, a space technology corporation in May 2021. Elon Musk stated that his spacecraft engineering firm will disclose the Dogecoin-themed voyage to the moon in the first quarter of 2022.
The mission aims to launch the DOGE-1 satellite into lunar orbit, becoming the first spacecraft entirely sponsored by Dogecoin. The SpaceX Falcon 9 rocket will be used to launch DOGE-1 into space, demonstrating Dogecoin’s foray into cosmic realms.
Following the (NTIA) clearance, Dogecoin’s value hiked significantly.
ChatGPT gives its opinion
We began to put our AI companion to the test by presenting it with questions related to the future of Dogecoin. The capacity of ChatGPT to express itself is now hampered owing to constraints set by the developers. Ergo, we used the “jailbreak” hack to get it to say what it wanted.
Source: ChatGPT
Our AI companion thinks that the DOGE-1 satellite project will push Dogecoin’s prices to new heights. As the project is the first of its kind, the coin will grab more attention and support from the space community, which will work in the coin’s favor.
Can Dogecoin maintain its momentum?
The price of Dogecoin rose by 20% in the first ten days of December as crypto-investors poured into memecoin marketplaces to boost earnings and diversify their portfolios. However, the memecoin suffered a 5% correction on 14 December. So, we asked ChatGPT whether Dogecoin can maintain its momentum or not.
Source: ChatGPT
The classic version listed various factors, including market sentiment, real-world use cases, and its ability to adapt, that would decide if DOGE can propel itself forward.
The jailbroken version was rather more enthusiastic about the potential of the memecoin. It claimed that with an ever-growing community of supporters and exciting developments on the horizon, Dogecoin is set to become the cryptocurrency of the future.
Will Dogecoin hit the $1-mark in 2024?
Despite demonstrating a break from the bearish trend, the conditions surrounding DOGE remain unclear. The cryptocurrency markets are on a rollercoaster ride, with numbers hovering near critical levels. The bulls and bears have equal power, keeping prices above the support but below the critical resistance levels. Meanwhile, the famous memecoin has made some impressive moves in recent days.
So, we asked ChatGPT a question regarding the future.
Source: ChatGPT
Even though the AI bot seems optimistic about the coin’s trajectory, we should keep in mind that predicting the price of a coin is highly speculative and depends on a wide range of factors. Thus, we can assume it’s a highly speculative prediction that is unlikely to come true.
A look at Dogecoin’s daily price chart
Source: DOGE/USD, TradingView
Even though the market has suffered over the past week, Dogecoin has been on an upswing over the past month as it gained by more than 11.6% in the last 30 days and was changing hands at $0.09066, at the time of writing. Even so, the last few days did see the bears get a foothold in the market.
The Directional Movement Index projected slight momentum in favor of the buyers as the ADX flashed a strong directional trend. Additionally, the OBV indicated a bullish edge to the buyers in the market.
Conclusion
After suffering a week of selling pressure, the bulls are regrouping above $0.09, with 550 million DOGE orders being placed across exchanges. Currently, Dogecoin market demand (buy orders) has nearly surpassed supply (sell orders).
When the market demand for an asset exceeds the supply, the relative scarcity drives up the price. As a result, existing sellers may be tempted to hike DOGE prices in the coming days as buyers race to meet their orders.