(John Isige – FXStreet)
– Support at $0.0650, coupled with Dogecoin price’s highly oversold conditions, may trigger a move north.
– The Dogecoin-Ethereum bi-directional bridge may be released before the end of 2022 and is likely to be a bullish factor.
– Recovery to $0.1000 will greatly depend on who wins an expected scuffle around $0.0689.
Dogecoin price is at the tail end of the most recent pullback from $0.0917. The largest meme coin pivots at $0.0686 at the time of writing, but it’s expected to close the distance to $0.1000 with its next move. Anticipation of the release of a Dogecoin-Ethereum bridge may prove a bullish catalyst.
Key levels to watch as Dogecoin price rebounds
Cryptocurrencies across the board have been seeing relief bounces in the wake of last week’s pullbacks. Dogecoin price is among the few crypto assets that delayed their reflex recoveries, but a thorough price analysis reveals an imminent climb.
The daily chart paints a bullish picture considering that the Super Trend indicator recently flushed a buy signal. This indicator overlays the chart like a moving average, but it integrates the average true range (ATR) in its calculations to gauge market volatility at any given time. If investors heed the buy call shown on the chart, Dogecoin price will set off for the target at $0.1000.
Odds will keep leaning on DOGE’s bullish side as long as the Super Trend indicator trails the price. The Stochastic Oscillator exposes Dogecoin price’s highly oversold conditions – which may reinforce the projected jump to $0.1000.
Dogecoin-Ethereum bridge may go live in 2022
The much-awaited Dogecoin-Ethereum bridge will go live before the end of 2022 and it is likely to be a positive factor influencing DOGE price. Blue Pepper, the entity tasked with building the bridge, recently released details of the project.
Users can transfer DOGE to the Ethereum blockchain using the bi-directional bridge (and vice versa). Smart contracts, decentralized financial protocols, and non-fungible token exchange platforms will all make use of the meme coin.
The founding members of the decentralized autonomous organization (DAO) – in charge of the protocol will be the Dogecoin Foundation, Blue Pepper, MyDoge and BitGo.
The Dogecoin ecosystem will benefit massively from the bi-directional bridge, starting with ease of data and asset transfer. Demand for the meme coin may rise significantly amid increased exposure to the Ethereum ecosystem and positively impact the price.
Meanwhile, traders must tread carefully, keeping the bear market in mind. Investors may book early profits at $0.8000, with the most bullish waiting till $0.1000.