Dogecoin has been in a bearish trend since November last year, with the crypto market sliding lower for more than a year, as the establishment continues the war on cryptocurrencies. Although we saw a surge in the DOGE price as Elon Musk took over Twitter. The meme coin rallied around 200% in a matter of days, peaking just below $0.16 as shown on the daily chart below.
At the moment, DOGE has lost a good portion of those gains, falling to $0.07 eventually, although DOGE holders are having a better time compared to investors in other large cryptocurrencies. The 200 daily SMA (purple) held as support during the decline earlier this month and it is holding again now, as the price starts to bounce higher.
Dogecoin Daily Chart – Buyers Coming in at the 200 SMA
Will we see a bounce off the 200 SMA?
Data from IntoTheBlock shows that while bitcoin and Ethereum investors are seeing more than half of their holders being in loss, 57% of all DOGE holders are in profit. That goes against the current trend of losses in the crypto market. The meme coin has a large base of long-term holders, with 69% of all investors holding their tokens for more than one year, who hope that Dogecoin maybe integrates into Twitter and DOGE goes to $1.
We heard that the Ethereum co-founder Vitalik Buterin has donated 20 million Dogecoin (DOGE) to the Dogecoin Community. Although it is yet to be announced how the donation will be used by the non-profit organization. In September, after Ethereum successfully implemented the much-anticipated Merge upgrade, Buterin suggested that Dogecoin should become the next cryptocurrency to move to the proof-of-the-stake consensus algorithm. Right now, Dogecoin remains the second-biggest proof-of-work cryptocurrency (behind only Bitcoin).
Read More: The 200 SMA Still Holding As Support for Dogecoin – Will We See a Bounce?