Is It Time to Turn Bullish About Dogecoin (DOGE)?
Leading memecoin Dogecoin continues its downtrend into Wednesday after having lost more than 13% of its value over the past week alone, feeling the weight of the bearish mood in the wider cryptocurrency sector. At the time of writing, DOGE/USD is trading at around $0.209.
Even as the downbeat sentiment among investors towards riskier instruments continues to keep cryptocurrencies trading under pressure, there are some interesting fundamental developments that can offer support to DOGE in the near-term. If the sentiment reverses, these factors may even help the memecoin climb higher and overturn its recent losses.
Adoption of DOGE as Payment Option Rises
During the previous session, US’s largest theater chain AMC saw its CEO, Adam Aron, post a Twitter poll to gauge interest from the online community on whether the company should start accepting payments in Dogecoin. He confirmed that the company was planning to introduce crypto payments by the end of this year but wanted to know if users would be interested in transacting in DOGE as well, driving up a flurry of interest among the memecoin’s online community, Doge Army.
Meanwhile, a leading US-based commercial real estate (CRE) tokenization platform RedSwan CRE announced that it will start accepting payments in DOGE for purchasing real estate on two of its projects. A move like this boosts the adoption of Dogecoin among users, giving them more use cases for making transactions with the cryptocurrency that had originally started as a joke.
A leading webcam website, BongaCams, also recently announced the adoption of DOGE as a payment option for its users interested in making purchases on the website. The company stated that it added DOGE as a payment option on account of its soaring popularity over the year in addition to its benefits allowing users to perform fast and anonymous transactions.
Since the beginning of this week, there has been a slow uptick in trading volume in Dogecoin – a key metric that indicates a potential interest in the use of the coin. A continued increase in volume can support Dogecoin’s price in the coming sessions, and aligns with the recent news of higher levels of adoption of the crypto as a payment option among businesses.
Key Levels to Watch
Technical analysis of the H4 price chart of DOGE/USD reveals a bearish bias among most of the moving averages. However, leading technical indicators MACD and momentum are exhibiting a bullish bias as well.
Dogecoin’s price is sitting right at the crucial support level at $0.209 at the moment. Further buying interest will be needed to overcome this level. However, the confirmation of a bullish trend will require DOGE to rise beyond the next support at $0.221 and then the pivot point at $0.24 as well.
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