Will DOGE Rise More, or Crash Again?

Dogecoin has rallied in Aug. 2021. After struggling near 20 cents, DOGE is back above 30 cents. While the meme cryptocurrency is still far below its 2021 highs, its near-term price prediction looks positive. Will DOGE rise more, or could we see another crash?

Every rise in dogecoin has had some connection with “dogefather” Elon Musk, one of the coin's biggest backers. Musk’s tweets have had a significant impact on dogecoin prices.

Mark Cuban, another prominent backer of dogecoin, called DOGE the best medium of exchange among cryptocurrencies. After Musk agreed with Cuban in a tweet, the joke cryptocurrency soared.

In other dogecoin news, players of the English Premier League's Watford Football Club have agreed to wear the dogecoin logo on their sleeves in the 2021–2022 season. The deal is reportedly valued at $1 million.

Dogecoin is following an uptrend and has crossed above its 50-day and 100-day SMAs (simple moving averages). DOGE met strong resistance at its 50-day SMA, but with its recent surge, DOGE is now comfortably above it. Dogecoin's 12.26 MACD (moving average convergence divergence) also signals “buy.”

However, after its rise, dogecoin is now in overbought territory. Its 14-day RSI (relative strength index) score is 79, with a score above 70 signaling that an asset is overbought. DOGE could see some consolidation and find support at its 100-day SMA of $0.288.

Musk has flip-flopped, and despite Twitter poll results favoring Tesla's acceptance of dogecoin, the controversial billionaire did not allow DOGE to be used as payment for Tesla products. Musk’s moves are notoriously hard to predict and he has changed his stance on Tesla matters several times.

For example, within days of denying Tesla's need to raise capital, Musk announced a capital raise in 2020. The company raised $13 billion that year and deployed some of the money in bitcoin in Q1 2021. Since then, though, Musk has had a change of heart on bitcoin and stopped accepting it as payment, citing energy concerns.

After AMC Entertainment said it would start accepting bitcoin as payment, dogecoin fans asked the company to accept its fellow meme asset, DOGE. However, AMC hasn’t confirmed whether it will do so. Dogecoin fans have also (unsuccessfully) tried to get Amazon to accept the meme cryptocurrency. Given the personal chemistry between Musk and Jeff Bezos, Amazon's acceptance of a cryptocurrency associated with the Tesla CEO is unlikely.

When it comes to cryptocurrencies, we can never rule out a crash. Another round of crackdowns in China, higher regulatory screening in the U.S., or a celebrity tweet could all trigger a dogecoin crash.