Dogecoins on a data chart
Source: Pixabay

Will Dogecoin Join the Party and Go Up Amid Meme Mania?

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Aug. 25 2021, Published 8:28 a.m. ET

Dogecoin (DOGE) prices have pared their gains after the surge at the beginning of August. Meanwhile, we’ve seen a spike in meme stocks like AMC Entertainment (AMC) and GameStop (GME). What’s the prediction for Dogecoin and will it go up amid meme mania?

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There was a splendid rally in meme names like AMC, GME, and ContextLogic (WISH) on Aug. 24. Usually, meme stocks trend together. Previously, we’ve seen DOGE prices crash as meme stocks tumbled. However, the meme cryptocurrency hasn’t participated in the recent rally in meme stocks.

Dogecoin is getting popular.

Dogecoin is getting popular among retail traders. If any proof was needed, Robinhood’s second-quarter earnings exemplified the growing craze for DOGE among retail traders. Revenues from the meme cryptocurrency accounted for a large chunk of Robinhood’s revenues.

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dogecoin meme mania
Source: Pixabay

While DOGE has been getting popular among traders, many of whom might see it as a gateway to become a millionaire, its adoption in the real world has been slow. This holds especially true considering that it's among the top 10 cryptocurrencies by market cap. While Dogecoin has come down in terms of relative ranking, it still commands a market cap of $38 billion.

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The most recent Dogecoin adoption has come from an animal rescue organization in Chicago. The organization said that it would accept multiple cryptocurrencies including Bitcoin and Ether.

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DOGE price prediction

DOGE has fallen below a key support area and the first pivot support point would be $0.2777. The 100-day SMA (simple moving average) is at $0.2715, which would be another crucial level to watch. If DOGE doesn't hold these two support areas, it could fall more.

Dogecoin prices have moved to a higher base. After sagging near the $0.20 price level for some time, the prices have been trading near the $0.30 price level. The 14-day RSI (relative strength index) for DOGE has come down to 55, which is a neutral indicator. The RSI surged above 70 earlier in August, which indicated overbought positions.

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dogecoin technical analysis
Source: TradingView

However, the MACD (moving average convergence divergence) is giving a sell signal for DOGE. Dogecoin has been trying to consolidate near the $0.30 price level after the massive up move. The recent fall from the peaks has been a healthy correction.

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Will DOGE go up?

Now, to move to the next level, Dogecoin would need buying support. It could come from a macro level if we see a rise in all cryptocurrencies. The crypto market is taking a breather after the steep rise over the last few weeks. Bitcoin, which crossed above $50,000 for the first time since mid-May, is also back below the level.

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From a micro perspective, adoption by a major company could help Dogecoin move higher. While backers like Elon Musk have been supportive of DOGE, the meme cryptocurrency’s adoption has been a weak point. Even Tesla doesn't accept the meme cryptocurrency despite overwhelming support from Musk’s Twitter followers in a poll.

Finally, the sentiments would need to improve. The recent rise in meme stocks could also help DOGE move higher. A supportive tweet from Musk could help buoy the sentiments towards Dogecoin. The meme cryptocurrency has been moving on sentiments and technicals in absence of much real-world usage.

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