The DogeOS testnet is now live, providing EVM-compatible smart contract services on the Dogecoin network using a zero-knowledge rollup approach. This move provides developers with a new playground for developing applications using DOGE for transaction fees.
At the time of writing, DOGE is trading at $0.09448, up 0.60% over the last 24 hours, with $1.92 billion in daily volume and a market cap of $14.72 billion. The launch could expand Dogecoin’s role beyond payments by opening the door to lending, trading, stablecoins, games, and other applications.
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What Happened With Dogecoin?
The important development in this regard is that DogeOS’s public Chikyū testnet was released on September 30. The DogeOS application layer is EVM-compatible and uses a zero-knowledge rollup. In other words, developers who are familiar with the Ethereum ecosystem can develop their applications in DogeOS.
DOGE is the native token of DogeOS and hence can be used for paying transaction fees in DogeOS. Developers can thus utilize DOGE while developing and testing smart contracts in DogeOS.
There will be no need for any modification of the Dogecoin protocol layer. Rather, DogeOS utilizes an application layer, which determines its own state on the Dogecoin blockchain.
Development of the ecosystem has already begun on several different use cases. According to DogeOS, projects are developing liquidity, lending, perpetual trading, options, stablecoins, prediction markets, launchpads, and games.
This would create a potential way for Dogecoin to support applications that previously needed separate smart-contract networks.
Why Is the Market Watching Dogecoin?
The market structure of DOGE is important to consider since it comes at a time when DOGE is trading just below an important technical level.
Furthermore, the provided market structure for DOGE indicates that the daily trading volume for DOGE is $1.92 billion.
The DogeOS development becomes another element for the market to track. In case the apps manage to draw people in on the testnet and then move towards mainnet, there is the potential for DOGE to be used even more because of the fees and activity within the application layer.
Nevertheless, the testnet by no means proves the emergence of this extra demand. It all depends on the success of the developers in creating applications and users in using them.
What Does the Technical Setup Show?
The current price of DOGE stands at $0.09448, having gained 0.60% over the last 24 hours, according to CoinMarketCap data.
The support range of $0.0833-$0.09 has been identified by the crypto analyst “More Crypto Online.” As long as the price stays above this level, the higher structure remains technically valid, as highlighted by the analyst.
Above the $0.10 level, the focus will be back on the September highs, while a break below the $0.09 level will bring more importance to the lower support levels.
It should be further noted that, according to Coco Crypto, the price of DOGE was trading above its 20-, 50-, and 200-period EMAs. It was also observed that the EMAs were moving upwards, which creates a positive technical formation.
What Analysts Are Saying
According to More Crypto Online, as of October 1, there was no upside push, and it is expected that a diagonal formation is being formed. This is because the analyst has noted that the price action is currently corrective and there is still room for DOGE to rise, as long as it stays above the $0.0833-$0.09 level.
However, Coco Crypto has observed another element of the setup, where it is noted that DOGE stays above the 20-, 50-, and 200-period EMAs.
All the perspectives, in combination, reflect a market that is looking at the same important levels in different ways due to their interpretation of the prevailing setup. It is very important that the $0.09 region is considered.
What Happens Next?
The next key trigger for Dogecoin is the further development of the testnet of the DogeOS operating system.
The exact launch date of DogeOS’s mainnet has not been announced yet. Rather, it has been said that they will release the mainnet’s schedule according to the achievement of certain milestones.
The number and activity level of applications on the network will thus be important areas to monitor. Initiatives focusing on borrowing and lending, liquidity, perpetual trading, stablecoin creation, prediction markets, and gaming will likely give an initial signal regarding Dogecoin’s potential for creating an ecosystem of applications.
In the case of DOGE, technical levels also continue to remain important. The $0.0833-$0.09 range continues to serve as a key support level, while $0.098-$0.10 remains an important resistance range.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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