The cryptocurrency market is trying to recover after last week's selloff, and Dogecoin is no exception; its price has returned to $0.1087, up 5% in the last day.
Yesterday, prices fell on worries about a potential escalation in the Middle East war and an appeal by the SEC against Ripple; but, today's rebound in DOGE has helped to mitigate some of those losses.
However, after a month of gains of 12.5% and a year of gains of 78%, the meme token is still down 11.5% in the last week.
Dogecoin investors may have heard a warning from Mark Cuban today, who warned that every meme token "is a rug pull in the works." This type of long-term progress is encouraging, however.
Dogecoin Price Analysis: Is Billionaire Mark Cuban's Warning About Meme Coins Worrying for DOGE Holders?
As Cuban put it on the Rug Radio show, "there's no real reason for [a meme coin] to stick around other than the fun of it." This is how he now sees meme tokens...
That is to say, the price of a meme token will fall if whales or a large number of traders stop buying it since there is no longer any fundamental support for it.
The comment by Cuban is noteworthy since the Shark Tank star has already expressed his support for Dogecoin. In fact, he even went so far as to call it the "strongest" cryptocurrency on the market in 2021.
The time that has passed since Cuban made this comment and his interview yesterday makes it unclear whether he still thinks highly of Dogecoin.
His comments didn't seem to have much of an effect on Dogecoin's price, which has since rebounded from its initial losses.
Right now, its indications are indicating greater momentum, which means DOGE may keep recovering over the weekend.
By way of illustration, the relative strength index (purple) has increased from 20 on Tuesday to just over 60 today, and there is still room for it to grow further higher before we reach clearly overbought conditions.
Another indicator that DOGE is about to start a recovery phase is the orange 30-period moving average, which is slowly but surely making its way back up towards the blue 200-period average.
Its comparatively large 24-hour trading volume of $1 billion is good in this regard, suggesting increased demand.
Dogecoin could bounce back to $0.15 by month's end and reach $0.30 by year's end, supposing tensions between Israel and Iran do not escalate.
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