Recently the world’s favorite meme coin broke a three-week milestone in order to start 2023 on the right foot.
On January 9, Doge reached $0,078 around 3 PM GMT time.
This recent pump comes at a much-appreciated time for dogecoin investors. The meme coin spend most of December on a downtrend, while also consistently suffering flops, mostly related to speculations about Elon Musk’s “turbulent” time as Twitter CEO.
Throughout its history, Dogecoin had in the $0,066 to $0,078 margin one of the strongest resistance zones so far.
The meme coin entered that zone for the first time on February 8, 2021. From there the token traded sideways for 2 months before picking up its biggest rush to date.
On April 11 Doge broke the aforementioned resistance zone. At the time, the meme coin surged by a ridiculous 318%, reaching $0,31 only 8 days after.
More recently, however, that zone is serving as mostly the price where dogecoin refuses to drop.
During the crypto winter of 2022, doge reached that zone on June 11th. And since then, the meme coin has been mostly trading sideways.
In fact, that margin is so strong for dogecoin that even the constant outside pressures from regulators and FED interest raises were unable to significantly drop the currency for a long time.
Now, with doge back on that margin, investors have every right to be optimistic about the future of the cryptocurrency.
Expectations about 2023 promise a far better market. The FED is already indicating a deceleration of interest raises, and the most recent U.S. job report showcased a steady inflow of new jobs in the nation. Meaning that the country entering a long-lasting recession is becoming more and more unlikely.
The Musk Effect
However, one thing that differentiates dogecoin from most cryptocurrencies is the extremely close relationship it has with Elon Musk. The billionaire and dogecoin have proved to have a very lucrative partnership in the past.
On more than one occasion, Musk promoted his favorite cryptocurrency which caused its price to skyrocket.
But now, that relationship can take a turn for the worse. If Musk’s Twitter endeavor turns out to be a failure, that failure could very well spill into dogecoin as well.