Dogecoin price edges north, shows short-term bullish momentum after Elon Musk says X is a DOGE friendly space

Dogecoin price is nurturing an uptrend despite broader market gloom after the recent 15% crash in Bitcoin price.
DOGE could rise above the early July highs at around the $0.07000 level, potentially tagging the $0.07303 - $0.07689 order block.
The outlook is supported by X’s CEO, Elon Musk, reiterating the giant social media platform’s support for the meme coin.
Invalidation of this thesis would occur upon a decisive daily candlestick close below the $0.05984 level.

Dogecoin (DOGE) price has an uptrend budding, a change of fortune inspired by a recent tweet from technology billionaire, Elon Musk. He endorsed DOGE for yet another time in a recent post on giant social media platform X (formerly Twitter).

X is a dog & Doge friendly place!
— Elon Musk (@elonmusk) August 23, 2023

Also Read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC finds support, inspires hope for altcoins

Dogecoin price finds strength

Dogecoin (DOGE) price rose by around 5% on August 23 to record an intra-day high of $0.06546 on August 23. It followed Elon Musk’s tweet, endorsing that “X is a dog and Doge friendly place!”

If bulls capitalize on this head start, Dogecoin price could rise toward the supply zone marked in orange. This order block, located between $0.07303 and $0.07689, represents an area where sellers abound. As such, it is likely that DOGE could fall after nearing or tapping this zone because of selling pressure.

However, if bullish momentum is sufficient to overcome selling pressure from the aggressive sellers, the Dogecoin price could breach past it, converting it into a bullish breaker before extending a neck north. Such a move could see DOGE auction at $0.08514 or, in a highly bullish case, reclaim the range high at $0.09620.

The Relative Strength Index (RSI) is moving upwards, showing rising momentum. The same goes for the histogram bars of the Awesome Oscillator (AO), which have turned green to show bulls gaining ground.

DOGE/USDT 1-day chart

Santiment data to support short-term bullish outlook

On-chain data from Santiment supports the current short-term optimism for Dogecoin price. With a focus on the one-week timeframe, the aggregate number of DOGE tokens traded among holders on this day has increased from 214.32 million on August 22 to 323.97 million on August 23. This constitutes a 51% climb from current levels.

Secondly, the social dominance of DOGE has also increased over the same timeframe, moving from 0.107% on August 22 to the current 2.816%. Also, the daily trading USD volume is also up from 206.08 million on August 21 to the current 322.6 million. This constitutes a 57% increase in less than three days.

DOGE Santiment

Conversely, if Dogecoin price loses steam, the dog-themed meme coin could break below the immediate support at $0.05984 with the potential to collect sell-side liquidity before a possible uptrend.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

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