Dogecoin (DOGE) has been on a tear thus far in 2014. At its peak around mid-February, it had gained over 700% year-to-date and even surpassed Peercoin for third place in market cap amongst mineable cryptocurrencies. At the time, its total valuation exceeded $90 million.
Since then, its value has oscillated about the $60 million level- a 33% drop from its peak in February. It has still retained the bulk of its gains though. The question dogecoin holders will be asking is: is the dogeparty over or are we experiencing a brief correction, especially when considering the troubles that have rocked the broader crypto markets in the past month?
One encouraging sign for DOGE holders is its forming of a robust support level around the $45 million mark. It initially tested this level soon after its multifold rally in January. Since then, it has tested it multiple times, both prior to and following its record-breaking highs in mid-February.
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Most encouraging is its resilience as the majority of altcoins faltered badly throughout the MtGox crisis and have since failed to make a complete recovery. While DOGE has shared a similar weakness of late, we note that its losses merely represent a partial giveback of monumental gains. In contrast, Litecoin, for example, is still down 50% from its old support level of $23.
As such, holders should be keep an eye both in its bitcoin-denominated and dollar denominated prices, as it’s once again trading close to its support level. Any meaningful breach can entail a severe bout of profit taking and a fall back below $40 million.
DOGE is currently trading around 135 satoshi (0.084¢).