Dogecoin (DOGE) price has been consolidating in a wedge formation since November last year, indicating that the market is in a neutral state. While the 50 and the 200 moving averages (MA) on the daily time frame signal a continued bull market, the possibility of a pullback that acts as a stop hunt cannot be completely ruled out. Moreover, Dogecoin is one of the most traded coins, with over $1.92 million liquidated in the past 24 hours.

Possible Outcomes for DOGE

Trading at around $0.085 on Thursday, Dogecoin price is facing two likely scenarios in the coming weeks. The first one is the continuation of the bullish thesis that began after tech billionaire Elon Musk purchased Twitter. 

In such a scenario, the Dogecoin price could rally beyond $0.155 and form a new nine-month high. However, the rally may not be sustainable as the accumulation base was not wide enough to offer support. On the other hand, the Dogecoin price could tumble and retest the $0.057 support level.

Dogecoin Market Outlook 

The support from tech billionaire Elon Musk heavily incentivizes the Dogecoin community. Over the years, Dogecoin price has spiked immediately after positive tweets from Musk. With Musk preparing to launch an everything app with technical support from Twitter, the Dogecoin community anticipates the billionaire will add the meme lord as a form of payment. 

Additionally, Musk has been pushing other mainstream businesses like McDonald’s to adopt Dogecoin as a form of payment.

On-chain data shows that the Dogecoin network has over 5 million holders, and the second-largest proof-of-work (PoS) digital assets have a total mining difficulty of about 11,684,696. However, competition from meme coins like Shiba Inu and Floki (FLOKI) has significantly affected Dogecoin’s market share.