Dogecoin (DOGE) Signals Imminent Price Resurgence, Is It Time to Buy the Dip?

Dogecoin (DOGE) is making a steady resurgence after falling to November 2022 lows. Will the negative social sentiment convince crypto investors to buy the dip? 

A closer look at the on-chain data suggests that the meme coin may have found a bottom. 

Dogecoin (DOGE) Social Sentiment Hits Local Low

On March 10, Dogecoin fell to $0.065, in a bearish move that sent it towards the levels recorded during the Nov. 2022 crypto crash. However, by March 22, it had recovered 17%, reaching $0.077. The social sentiment among Dogecoin network participants appears to have taken a downturn in recent weeks. According to blockchain analytics firm, Santiment, the mentions of Dogecoin across popular crypto media channels have dwindled significantly in the last 30 days,

The chart below depicts how Dogecoin’s social dominance declined from 6.8% on Feb. 19 to 2.6% on March 22. 

Dogecoin (DOGE) Social Sentiment, March 2023. Source: Santiment

Social dominance expresses the share of Dogecoin mentions as a percentage of aggregate social media discussions involving a select group of over 50 top-ranking crypto projects. 

Typically, a decline in social dominance indicates that most network participants and holders are currently pessimistic, which could spur crypto investors to swoop in to buy the dip.

Another significant bullish signal for DOGE is the positive divergence between daily active addresses and recent price action. 

The chart below shows that between Feb 22 and March 21, the DOGE price declined nearly 10%, but the number of daily active addresses has increased from 49,997 to 56,300 while making a series of higher highs.

Dogecoin (DOGE) Price vs. Daily Active Addresses, March 2023. Source: Santiment

Typically, if a blockchain network begins attracting traction while the price of the underlying coins is in a downtrend, it signals an imminent recovery. Consequently, the positive divergence could propel DOGE into more gains in the coming weeks. 

Dogecoin Price at $0.10 Next? 

According to the Exchange Market Depth chart from IntoTheBlock, DOGE could soon break above $0.10. The Market Depth chart depicts key buy walls and significant sell zones based on the current limit orders placed on exchanges.

As seen below, Dogecoin will likely face minimal resistance until it reaches $0.088, where sellers are looking to offload 24 billion DOGE. If this resistance does not hold, DOGE can approach $0.10, where sell-orders of another 1.83 billion DOGE are open. 

Dogecoin (DOGE)  Exchange Market Depth, March 2023. Source:IntoTheBlock

For the bears to seize the initiative, the price of DOGE must drop below its current support around the $0.070 zone. At this point, buyers have placed orders for over 7 billion DOGE. If this support does not hold, DOGE may test $0.060 again.


BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Bookmark (0)

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *