- Dogecoin added 160,000 new users in 30 days, driven by ETF buzz and Elon Musk’s appointment to lead the DOGE oversight office.
- Dogecoin struggles to break $0.30 as market sentiment weakens amid the LIBRA token controversy.
Dogecoin (DOGE) has seen a rollercoaster ride in recent days, with price fluctuations triggered by ETF hype and market-wide turbulence. While hopes for a DOGE ETF initially sparked optimism, external factors have slowed momentum.
On Friday, DOGE slipped to $0.24, marking a 3% decline. This drop came despite the Securities and Exchange Commission (SEC) acknowledging Grayscale’s DOGE ETF filing. Additional filings from Bitwise added to the buzz, but bullish sentiment struggled to gain traction.
Memecoin Market Hit by LIBRA Token Controversy
One key factor suppressing Dogecoin’s price is negative sentiment in the broader memecoin sector. The controversy surrounding Argentina’s President Javier Milei and the LIBRA token scandal sent shockwaves through the market.
LIBRA, a fraudulent memecoin allegedly linked to Milei, saw a massive collapse, raising concerns among investors. This scandal caused a shift away from speculative assets like Dogecoin, limiting its price gains despite the ETF developments.
In contrast, other cryptocurrencies with pending ETF applications, such as Litecoin (LTC) and XRP, performed better. LTC surged to a 30-day high of $140, while XRP reclaimed $2.70. However, DOGE’s momentum lagged, highlighting market hesitancy.
160,000 New Dogecoin Wallets Created
Despite the price struggles, Dogecoin adoption continues to grow. On-chain data from Santiment shows that since January 20, 160,000 new wallets have been created on the Dogecoin network.
This surge coincides with former U.S. President Donald Trump appointing Elon Musk to oversee the newly formed Department of Government Efficiency (DOGE). Musk’s long-standing influence on Dogecoin has once again fueled interest, leading to an expansion in the user base.
With Dogecoin’s total wallets rising from 7.02 million to 7.18 million in just 30 days, the network is seeing increased decentralization and activity. A growing user base often translates to higher demand and reduced volatility, providing a bullish foundation for DOGE’s long-term trajectory.
Can Dogecoin Break $0.30?
While the recent uptick in new users is promising, Dogecoin price faces strong resistance at $0.30.
The Volume Weighted Average Price (VWAP) at $0.25181 suggests moderate buying pressure. However, DOGE is currently trading below this level, indicating weak bullish conviction.
Technical indicators present a mixed outlook. The Bollinger Bands show contracting volatility, with resistance at $0.27840 and support at $0.24. The Directional Movement Index (DMI) highlights bearish control, with the -DI (33.58) overpowering the +DI (13.50). The Average Directional Index (ADX) at 25.07 signals a strong trend.
For DOGE to regain momentum, buyers need to push beyond $0.26 and challenge the $0.28 resistance. A breakout above $0.30 could spark further gains. However, if support at $0.24 fails, DOGE may test lower levels at $0.22.
Dogecoin’s price action remains uncertain as ETF optimism battles against broader market headwinds. While new users continue to enter the ecosystem, negative sentiment from the LIBRA scandal has stifled immediate gains.
If DOGE maintains support and demand strengthens, a move toward $0.30 remains possible. However, for a sustained rally, bullish momentum needs to overpower current market skepticism.
