Dogecoin has kicked the fresh decade off with a 20% price surge as the cryptocurrency rises from a low of around $0.002 to reach the current late-January 2020 trading price of $0.0024. The cryptocurrency witnessed a rollercoaster year in price movement during 2019 after the cryptocurrency exploded from the 2019 low price of $0.0018 to climb as high as $0.0038 during the middle of 2019. 

However, after reaching this high, Dogecoin rolled over and went on to fall back into the support at $0.20. You can see this on the graph below!

The volume was low during the first quarter of 2019 but this all changed after the bull run kicked into gear and the volume has remained consistently high ever since. The $0.002 has provided a very strong level of support for Dogecoin throughout its lifetime and is expected to provide strong support moving forward. If Dogecoin does move on to break beneath this support, we could see a very turbulent year for any DOGE holders. However, with the current late-January 2020 market dynamics, we can expect the strong support at $0.002 to hold. 

Although Dogecoin does not have anything specific to look forward to this year in terms of cryptographic improvements, the community remains as strong as it has ever been. DOGE rose to prominence and became one of the top 30 cryptocurrency projects due to the fact that it has a very loyal community that absolutely adore their cryptocurrency. The idea of financial gains is not a part of the community ethos, and instead, Dogecoin is more focused on being a community cryptocurrency which can be used to transfer value and easily be used to tip others with. 

This strong community is the cornerstone as to why any potential investor can remain excited about DOGE. With an unwavering loyalty and a very active user base, we can expect Dogecoin to remain in the hearts of mind of thousands of users - providing a consistent source of liquidity and a potential for user growth. 

Many of the previous “pumps” that Dogecoin has seen have been due to the community banding together to create noteworthy sponsorships and to execute commendable charitable causes. If the community can continue to function in this type of fashion during 2020, we can expect Dogecoin to continue to thrive. 

For the reasons stated above, and more discussed below, I believe that DOGE has the potential to surge by a total of 192% in 2020 to reach my target price of $0.007 at some point during the year. 

In this article, I’ll firstly cover a range of topics that I believe will influence DOGE in reaching my $0.007 target during 2020 and then analyze DOGE on the weekly chart to highlight some areas of resistance on the way toward the target.

What Is Doge?

Doge is often considered as a “joke” coin or a “meme” coin, however, do not let this fool you as it has a VERY strong and adoring community behind it that creates an environment in which the price could literally explode at any time! In fact, Dogecoin could potentially be one of the most adored cryptocurrency projects in the entire industry - people just love Doge and haven’t stopped since its inception! Much Love! WoW!

Doge is actually one of the oldest standing cryptocurrencies as it launched in late 2013 after Bitcoin climbed above $1000 for the first time ever. It was created by Billy Markus, a programmer, and Jackson Palmer, an entrepreneur, with the hopes to create a cryptocurrency that was not so heavily focused on the financial side of things - so they used the famous Shiba Inu dog from the “Doge” internet meme sensation as a mascot. It was intended to be a simple transaction platform in which users can send Dogecoin to each other. 

Dogecoin is often used as a means of quickly transferring value from one exchange to another, due to its very short block time (1 minute) and minuscule fees. The DOGE markets on many exchanges are highly liquid which allows traders to swap BTC or ETH for DOGE in order to send to another exchange and then swap DOGE back into whatever they want. Furthermore, as DOGE has incredibly low transaction fees, it is also commonly used as a tipping coin.

To find out more about Dogecoin and its history, take a look at this fantastic article. Another great read about Dogecoin is found here.

Dogecoin NOT Reliant on Groundbreaking Cryptographic Principles

The majoirty of cryptocurrencies tend to always look for the next stage of development to improve their protocol and increase the use case within their project. There is a constant race between projects to see who can continue to find the next groundbreaking piece of technology to take their cryptocurrency (and the entire industry) to the next level.

However, Dogecoin is different in the sense that it stands out from the crowd because of the community efforts in real-world fundraising and charitable causes - NOT any groundbreaking cryptographic developments. 

For example, in the early days of DOGE, the community managed to raise a staggering $50,000 (a reasonably considerable amount at the time) to sponsor the Jamaican bobsled team and take them to the Sochi Winter Olympics for the first time in over a decade! Another example is the building of a well in the Tana River Basin in Kenya in which the community came together to raise $30,000 that was contributed from over 4,000 donations. 

The community has also banded together to send Dogecoin to the moon…and I mean this LITERALLY! Through a collaboration with Astrobotics, the Dogecoin community managed to raise over 4 million Dogecoin in an effort to send Doge to the moon. The launch for this extraordinary moment for Dogecoin is expected at some point in Q1 of 2021. 

Developmental Activity Resurging

The developmental activity took a drop during the winter holiday period - which is no surprise considering that DOGE isn’t really trying to make too many improvements to their already solid protocol. However, it is a good sign that the developers are still consistent in making amendments whenever they are needed. 

The data from Santiment shows the dip in activity during the Christmas and New year period, however, it has started to resurge. It is good to know that despite the lack of active development, the team is still making consistent adjustments to the codebase. 

Social Volume On The Rise

Additional data from Santiment shows that Social Volume is also on the rise again for Dogecoin. The data shows that Social Volume, mentions on all social media platforms and Telegram, had taken a downward swing during the winter months of 2019. However, as 2020 started to trade, we can see that the Social Volume has started to increase toward the early 2019 levels. This is a good sign as it shows that people are starting to talk about Dogecoin a little more, and if it can continue to increase, we can expect the excitement to spill over into price action.

Dogecoin (DOGE) Price Analysis

LONG TERM - DAILY CHART

What Has Been Going On?

Taking a look at the daily chart above, we can clearly see the sideways action that DOGE experienced during 2019. The cryptocurrency started the year off at a low of $0.0018 and went on to rise as high as $0.037 where it met resistance provided by a long term bearish .382 Fibonacci Retracement level. This bearish Fibonacci Retracement level is measured from the September 2018 price high to the 2019 low. 

DOGE did make an attempt to break above this resistance during July as it spiked higher into $0.0043, however, the market quickly tolled over and fell back beneath. It went on to slowly grind lower throughout the rest of 2019 until it reached the 2019 price low of $0.002 during late-2019.

As 2020 kicked into gear, Dogecoin started to rise as it climbed into the $0.0025 level. It struggled to overcome this resistance and has turned away to reach $0.0024 (as of late-Jan 2020). 

Are We Bullish Or Bearish (as of January 2020)?

As of late January 2020, Dogecoin remains in a neutral trading condition. If Dogecoin was to roll over and drop beneath the support at $0.002 then we would consider the market as being bearish. On the other hand, to turn bullish in the short term, DOGE would need to rise and break above the $0.0028 level. A break above the $0.0040 level would confirm a longer termed bullish trend that could be sustained for a few months during the year and would allow DOGE to climb to the 2020 target. 

Where Is The Resistance On The Way Up TO $0.007?

If the bulls group up for another push higher, the first level of resistance to overcome lies at $0.0025. Above this, resistance then lies at $0.0028, $0.0030, $0.0035, and $0.0037 (bearish .382 Fibonacci Retracement level). 

If the buyers can continue to push DOGE above $0.004, higher resistance can be expected at $0.0042 (1.272 FIb Extension), $0.00438 (bearish .5 Fib Retracement, and $0.0049 (bearish .618 Fib Retracement).

If the bullish pressure continues to drive DOGE above $0.005, resistance can be located at $0.0058 (bearish .786 Fib Retracement), $0.006, and $0.0063 (bearish .886 Fibonacci Retracement). If DOGE can clear this, it will only need to contest resistance at $0.0065 before being clear to make an attempt at my 2020 target of $0.007.

Conclusion

Dogecoin is truly an enigma within the cryptocurrency industry. It is a project that has zero developmental prospects but continues to be adored by its community. The fact that it is so loved is what continues to allow DOGE to thrive in an industry that continues to chase financial growth - by any means necessary. 

The growth for DOGE in 2020 will largely be reliant on its community once again. If Dogecoin can continue with crowd fundraising for charitable causes bringing attention to the project the cryptocurrency will have the potential to rise by 192% to reach my 2020 target of $0.007.

Before being able to reach $0.007, DOGE will need to overcome strong resistance at $0.0025, $0.0028, and $0.0030. Above this, resistance is expected at $0.0037, $0.0043, $0.0050, and $0.0058. The bulls will then need to break above $0.0063 before being clear to make an attempt at the 2020 $0.007 price target.