Dogecoin Bounce and Price Projections

Dogecoin bounced with the broader cryptocurrency market and also with risky assets on Thursday but has yet to build on possibly positive comments this week from Elon Musk on Twitter. Nevertheless, the chart outlook for the mem coin remains positive into year-end.

The meme coin, Dogecoin (DOGE), rebounded on Thursday, having seen back-to-back losses for the three prior days this week. This activity has eased the immediate downside threat and built on Monday’s advance to a multi-week high at 0.1118. Despite the setback from here, the market has held above even modest support from the latter November rally, at 0.0888, and retains both short- and intermediate-term bullish outlooks into year-end and Q1 2023 (see below).

Positive Musk Tweet re Dogecoin This Week

Earlier this week, Elon Musk responded to a Tweet from Billy Markus, the co-creator of Dogecoin, that “a whole bunch of accounts of people who, as far as i know, generally don't do anything but tweet memes and positivity are being suspended. pretty weird man.” with Musk replying that he would look into it and that “Team was a bit too intense with spam/bot suspensions. Moving to chill mode.” This no doubt aided Monday’s leap in the Dogecoin price to 0.1118, but there has been a lack of upside follow-through since then.

Dogecoin Price Prospects Still Bullish, Short- and Intermediate-Term

Despite the setback this week from 0.1118, whilst holding above 0.0888, even the short-term technical analysis outlook for DOGE remains positive. Moreover, the market has rejected much of the negativity from the early November sell off down from 0.1587, driven by the contagion threats from the collapse of FTX. The combination of the late October price explosion up to 0.1587, driven by Musk’s Twitter purchase, alongside the November defence of supports at 0.0706/0713, to create a Double Bottom pattern lends both short- and intermediate-term bullish outlooks for year-end and for Q1 2023.

Bullish Prospects: Upside risks for December are initially for a move back to 0.1118, then to 0.1321, maybe even closer to the multi-month high at 0.1587. The Q1 threat is certainly biased towards a challenge to this level, and then maybe even higher for the failure peaks at 0.1708 and 0.1793.But Downside Risks: Below 0.0888, however, would open the threat down 0.0706/0713 and possibly still lower towards 0.0551, perhaps even to the cycle lows at 0.0498/0.0492.