Dogecoin Spikes as Foundation Reveals Development Fund

The Dogecoin Foundation and its board of directors have just announced the establishment of a new development fund. The Foundation has set aside 5,000,000 DOGE for this fund in order to promote the growth of the Dogecoin Core platform.

Existing core developers and board director signatories handle the development money. During each release cycle, all payments will be monitored and reported on across all social media channels utilized by the Foundation. Payments will be made using a weighted mechanism based on the current Dogecoin Core tip jar scheme.

The fund is safeguarded with a multi-signature wallet that requires three out of five signatures from custodians chosen by the Foundation board. It has been announced that 500,000 DOGE would be distributed to contributors who are acknowledged in each core release for each major or minor upgrade.

If a custodian is unable to be reached for three months or longer, their successor must be unanimously agreed upon by the remaining custodians through their own nomination procedure.

In addition, Marshall Hayner was recently appointed to the Dogecoin Foundation's board of directors. Hayner has gained a reputation as a key personality in the cryptocurrency field as a result of his many years of engagement in the Dogecoin community and development of the cryptocurrency. 

Related Read: Dogecoin Spiked on Christmas as Musk Tweets Doge Costumed Shiba

Dogecoin Price Analysis

At the time of writing, the price of Dogecoin is $0.071892 USD, with a 24-hour trading volume of $371,248,297 USD. Dogecoin has increased by 3.21% in the previous 24 hours. DOGE is currently ranked #8 on CoinMarketCap, with a live market cap of $9,537,974,245 USD. The circulation supply is 132,670,764,300 DOGE coins, and the maximum supply is not known.

Source: CoinMarketCap

Also Read: A Brief History of Dogecoin

On a daily chart, Dogecoin began the trading session at intraday lows of $0.14 and advanced towards the resistance of $0.18, producing a bullish pattern as it trades above the 50-day exponential moving average (EMA) line. The 200-day EMA passed above the 50-day EMA, indicating that a bullish trend has emerged and that the price is expected to rise in the next few days.

The Fibonacci retracement levels also suggest that DOGE is trading between the 38.2% and 50% Fibonacci retracement levels, indicating that an upward price trend is conceivable in the near future. Furthermore, the RSI (relative strength index) indicator has gone above 50, indicating that bulls are gaining control of the market and that a strong upswing is developing.

Further technical indicators show that DOGE is in a consolidation pattern, with the 50-day EMA line and the 200-day EMA line creating a converging trend. This pattern appears when short-term averages progressively converge toward longer-term averages, indicating that a breakout is near.

Source: TradingView

Dogecoin price research on the 4-hour chart reveals that DOGE prices have fluctuated significantly in the previous four hours, ranging from $0.06936 to $0.07236. The Bollinger Bands indicator also suggests a high amount of volatility, with the upper and lower bands rapidly diverging as DOGE prices fluctuate. Furthermore, the Relative Strength Index (RSI) has been rapidly rising and is now at an elevated level of 59, suggesting that the asset is approaching overbought territory.

At the present levels, Dogecoin is expected to suffer rejection, and the price might fall below $0.06936 if traders take gains from the current overbought area. However, if bulls retain control, Dogecoin may be able to break through the present resistance level of $0.07236 and test higher levels.

A breakout of this magnitude would pave the way for an eventual test of $0.085, a critical resistance level that Dogecoin has been unable to overcome since mid-November.

Further technical analysis indicates that a prolonged rise above the $0.085 resistance level would allow Dogecoin to extend its surge beyond $0.10, and maybe beyond. The MACD is far above the red signal line, indicating that the bulls are likely to maintain their lead.

Source: TradingView

Dogecoin FAQs

How does Dogecoin gain value?

Dogecoin blocks are 1MB in size, much as Bitcoin blocks. However, due to the Scrypt nature, which allows for faster and cheaper transactions, Dogecoin's blocks are generated every minute as opposed to Bitcoin's 10-minute interval, allowing it to handle a larger number of transactions per second.

How does Dogecoin trading work?

Dogecoin is a cryptocurrency that enables fast payments on its ledger by employing a proprietary Proof-of-Work consensus method. The coin price of Dogecoin is determined by trading activity, technical value, mainstream use, adoption, collective trends in the crypto market, and a variety of other variables.

Who founded Dogecoin?

The spoof cryptocurrency was created by software developers Billy Markus and Jackson Palmer as a method to mock Bitcoin and the other cryptocurrencies claiming ambitious aspirations to take over the world. The website quickly gained popularity with Reddit's assistance.

What makes Dogecoin so special?

Its scrypt technology and limitless supply argued for a speedier, more versatile, and more consumer-friendly form of Bitcoin. Dogecoin is regarded as an "inflationary coin," whereas cryptocurrencies such as Bitcoin are deflationary due to a cap on the number of coins that can be issued.

Does Dogecoin have any real value?

Dogecoin may be used to make payments and purchases, but it is not a particularly good store of value. This is mostly because there is no lifespan limit on the number of Dogecoins that may be generated through mining, implying that the cryptocurrency is extremely inflationary by design.