Highlights:
- DOGE is currently in a minor consolidation, signaling a coming breakout
- Breakout could be triggered by news of growing adoption for remittances
- Rising bullish momentum around Bitcoin could boost DOGE as well
Dogecoin (DOGE) has seen minimal price activity today, with a slight dip of 0.49%, trading at $0.108 as of 11:26 UTC. Trading volumes have also decreased by 21% to $741 million. Looking at the charts, Dogecoin is in a minor consolidation phase after recently hitting a low of $0.091. It has since established support at $0.104 and is oscillating between this support and minor resistance at $0.113, indicating potential for a breakout in either direction.
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Technical Analysis and Market Outlook
Dogecoin’s current price consolidation suggests that a breakout is imminent. If a bullish breakout occurs, pushing DOGE through the $0.113 resistance, the price could rally to a high of $0.174 in the short term. Conversely, if bearish momentum takes over and DOGE falls below the $0.091 support, prices could reach as low as $0.07.
Given the broader market’s bullish signals, particularly Bitcoin’s approach towards $58,000, the likelihood of a bullish breakout for Dogecoin appears higher. Bitcoin’s strength often drives momentum across the crypto market, and Dogecoin stands to benefit from this trend.
Adoption and Use Cases
Dogecoin’s potential for price appreciation is further supported by its increasing adoption as a practical cryptocurrency for everyday payments. According to a Bloomberg report, Venezuelan immigrants increasingly use Dogecoin for remittances. As Venezuela recovers from a severe economic crisis, many families rely on cryptocurrency as a more efficient and cost-effective method for sending money home than traditional international banking systems.
Dogecoin in Venezuelan Remittances
Venezuela has become one of the primary remittance-dependent nations in South America. With high transaction fees and the volatility of the bolivar, cryptocurrencies offer a faster and cheaper alternative for remittances. The Bloomberg article noted that Venezuelans received over $5.4 billion in remittances last year, with over $461 million sent via cryptocurrencies. This represents about 9% of all remittances to Venezuela, highlighting the growing role of digital currencies in the country’s economy.
The process of sending remittances through Dogecoin, the article noted, typically involves using platforms like Coinbase to purchase DOGE, which is then transferred to recipients in Venezuela who convert it into Tether (USDT) on Binance. This method offers lower transaction fees and faster transfer times than traditional remittance services like Western Union or MoneyGram.
Real-World Impact
The real-world impact of Dogecoin’s use in remittances is illustrated by the experiences of Venezuelan immigrants like Paola Moncrieff, as mentioned in the Bloomberg article. After moving to the US, Bloomberg notes, Moncrieff found that sending money through traditional methods took a lot of work and effort. Using Dogecoin, she could send funds more efficiently to her tech-savvy relatives in Venezuela, who would convert the cryptocurrency into local currency or spend it directly.
Moncrieff’s experience points to Dogecoin’s potential as a practical currency beyond its meme coin origins. This practical use case, combined with Tesla’s acceptance of Dogecoin for payments, strengthens its position as a viable everyday currency. It points to investors that there is something about DOGE that the average meme coin in the market today does not have. Such underlying value could see significant money flow into DOGE once the broader cryptocurrency market enters the much-anticipated 2024/25 bull rally.
Dogecoin is for the people pic.twitter.com/NqJJ8PzSqK
— Sir Doge of the Coin ⚔️ (@dogeofficialceo) July 7, 2024
What Next for Dogecoin Price?
Dogecoin’s current consolidation phase, amid rising bullish sentiment across the market, sets the stage for a potential breakout. With increasing adoption for everyday payments and remittances, particularly in regions like Venezuela, Dogecoin is proving its utility beyond being just a meme coin. If the positive market sentiment continues and more real-world use cases emerge, Dogecoin could see significant price appreciation soon. If FOMO builds around DOGE in the short term, the odds of it hitting a high of $1 in the short term are high.
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