Dogecoin price held steady at $0.32 on Thursday. This came after a 20% drop in four days. The market sell-off slowed down. Reports say Elon Musk may buy Liverpool FC. This could boost confidence among DOGE traders.
Dogecoin price has recently stabilized at $0.32 after a sharp 20% drop in just four days. This recovery is notable, given the tough market conditions affecting many cryptocurrencies. Reports suggest that Elon Musk’s rumored plan to buy Liverpool FC might be boosting trader sentiment. This could be driving renewed interest in Dogecoin (DOGE).
Dogecoin Holds Firm at $0.32 Amid Market Turmoil
Dogecoin’s price stayed at $0.32 on Thursday, stopping a 20% drop over the past four days. This came after a market sell-off caused by concerns about the economy. These worries heavily impacted the global memecoin market.
Notably, Dogecoin price managed to avoid a breakdown below $0.32, as bears extended the weekly timeframe losses to the 20% mark on Thursday. DOGE’s rare show of resilience at this crucial support level suggests investors are defending this price zone.
Elon Musk Rumored to Eye Liverpool FC
A key factor boosting Dogecoin’s market is the rumor that Elon Musk might buy Liverpool FC. Musk has a strong influence on Dogecoin’s price. His business decisions and tweets have often sparked interest in the cryptocurrency.
If confirmed, this development could reinvigorate bullish momentum, with traders anticipating Musk’s involvement to bring DOGE back into the spotlight. The potential acquisition of Liverpool FC has already sparked discussions among crypto enthusiasts, many of whom view Musk as a key catalyst for Dogecoin price surges.
$3.4B in Futures Contracts Reflects DOGE Market Resilience
Dogecoin price resilience around $0.32 indicates that most DOGE traders remain reluctant to close out their existing positions. Coinglass data reveals that the total value of unsettled derivative contracts within the Dogecoin futures market stood at $3.4 billion as of Thursday.
This metric highlights the persistent engagement of traders, despite the recent price decline. Between January 5 and January 9, Dogecoin price fell by 20%, while Open Interest only dropped by 16%, moving from $4.07 billion to $3.4 billion. This slower decline in Open Interest compared to price suggests strategic traders are holding onto their positions in anticipation of a rebound.
Such dynamics could signal an early recovery for Dogecoin price, as traders anticipate a potential short squeeze to fuel upward momentum. This optimism is further supported by the belief that Elon Musk’s rumored acquisition of Liverpool FC could bolster confidence in DOGE.
DOGE Tests Key Support at $0.318 Amid Market Caution
Dogecoin price action continues to test the $0.318 support level, reflecting cautious sentiment among traders. The technical chart reveals that while Dogecoin has declined nearly 20% in four days, it remains above the critical 200-day moving average (DMA) at $0.284. This signals that long-term bullish traders may be attempting to establish a price floor.
Additionally, the Volume Delta narrowing to -$271 million indicates that selling pressure has waned significantly. If bullish momentum returns, Dogecoin price could potentially break above the 50-day DMA at $0.378, paving the way for a recovery toward the $0.40 resistance level.
A decisive close above the VWAP (Volume Weighted Average Price) at $0.326 would confirm renewed bullish momentum. This scenario would likely be fueled by short-squeeze dynamics, given the sustained Open Interest and active leveraged positions in the market.
Conversely, failure to maintain support at the 200-day DMA could expose Dogecoin price to further declines, with the next critical support level around $0.28. Increased selling pressure could amplify bearish momentum, invalidating the rebound narrative and signaling downside risks.
Elon Musk’s Influence on Dogecoin Price Evolves
Elon Musk’s association with Dogecoin is well-documented, with the tech billionaire’s tweets and business ventures often acting as catalysts for DOGE price movements. The rumored acquisition of Liverpool FC adds a new dimension to Musk’s influence, potentially creating a ripple effect in the crypto space.
Musk’s penchant for promoting Dogecoin as a viable cryptocurrency, coupled with his high-profile business moves, could draw fresh attention to DOGE. The prospect of integrating Dogecoin into the operations of a globally recognized football club could further boost its adoption and value.
In conclusion, Dogecoin’s price has stabilized around $0.32 following a significant 20% decline, supported by a rebound in market sentiment. Speculation surrounding Elon Musk’s rumored acquisition of Liverpool FC appears to be positively influencing DOGE traders, given Musk’s history of impacting the cryptocurrency’s value. Despite recent market turbulence, Dogecoin’s resilience is evident, with key support levels holding firm and a sizable futures market backing the token. If the rumored acquisition gains traction, it could potentially revive bullish momentum for DOGE, drawing further attention to its adoption and value.
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