(CoinDesk Analysis Team)
Dogecoin prices have surged this week following retail interest in Polygon Edge-based network Dogechain, a bridge that allows traders to convert dogecoin (DOGE) to weighed dogecoin (wDOGE) and allows them to use tokens, non-fungible tokens (NFT) and products built on the network.
Dogechain is built on Polygon Edge, which lets the project bootstrap a new blockchain network while providing full compatibility with Ethereum smart contracts and transactions, according developer documents.
DOGE prices rose some 10% in the past 24 hours even as the broader crypto market remained largely flat. This added to a 25% increase over the past week, CoinGecko data shows, and is currently seeing resistance at the $0.088 price level.
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Part of the price movement in dogecoin has arisen from user demand for DOGE tokens, which are used for bridging over to Dogechain. Dogechain – which touts itself as a layer 2 for dogecoin – uses dogecoin as the platform’s base trading token and as payment for fees on its network.
Dogechain is also set to airdrop its own DC token to users of the platform, its site shows. “The dogechain team is preparing to airdrop millions of $DC tokens to the Dogecoin community,” developers said. CoinDesk hadn’t replied to requests for comment at time of writing.
Some Crypto Twitter users have speculated that users who bridge their dogecoin to Dogechain will be recipients of the airdrop. This has further increased short-term demand for dogecoin.
The Dogechain bridge is raking in money from retail traders betting on short-term price movements of the dog-themed tokens, many of which contain “doge” or “shib” in their names. Most of these tokens are speculative in nature, however, and do not showcase a legitimate use case.
Data from on-chain trackers shows some $4.6 million in value is now locked on Dogechain-based products since its launch earlier this week. Over 97% of that is locked on Dogechain-based exchange DogeSwap alone, the data shows.
Dogechain developers said Wednesday that the network had seen over 480,000 unique transactions and some 58,000 native wallets since the network’s creation earlier this week.
Dogecoin price to provide a buying opportunity before exploding 35%
(Akash Girimath – FXStreet)
– Dogecoin price saw rejection at the multi-year trend line but hints at a retest of $0.082.
– A bounce off the $0.074 to $0.082 demand zone is the best place to buy for the next leg-up.
– A daily candlestick close below $0.074 will invalidate the bullish thesis for DOGE.
Dogecoin price sees a slow decline in bullish momentum as a major hurdle puts an end to its explosive move. A pullback is emerging for DOGE and is likely an opportunity that will allow bulls to recuperate and prepare for the next rally.
Dogecoin price to have another go at an uptrend
Dogecoin price flipped the $0.082 support level on August 16 as it rallied 12%. This move comes after spending nearly two and a half months below this resistance level.
The newfound bullish momentum has caused DOGE to create a demand zone, extending from $0.074 to $0.082. However, the uptrend faced rejection at the multi-year declining trend line serving as a resistance level.
As a result, DOGE is likely to retrace to the $0.082 support level and get squeezed between the horizontal support and declining resistance levels. An explosion from this range tightening is likely to result in an upward move that will retest the $0.093 hurdle after a 13% rally.
An extension of this explosive rally will push Dogecoin price to revisit the $0.109 hurdle, which is likely where a local top will form. Therefore, interested investors should watch for a bullish reaction off the aforementioned demand zone.
As long as DOGE remains above this area, a 13% to 33% upswing is likely for the meme coin.
While things are looking up for Dogecoin price, a breakdown of the $0.074 to $0.082 demand zone will invalidate the support structure and signal an inflow of bearish momentum.
This development will also invalidate the bullish thesis and trigger a correction to $0.072 from a conservative outlook and $0.062 if the selling pressure fails to subside.
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