Dogecoin (DOGE), the popular memecoin, has felt the sting of the recent crypto market downturn. Over the past week, DOGE has shed over 7% of its value, dropping from around $0.16 to a current price of roughly $0.141. This decline coincides with a broader market correction, but analysis suggests DOGE’s weakness may have begun even earlier.
Charts on daily timeframes reveal a potential head start on the downward trend for DOGE. According to AMBCrypto, DOGE’s decline started around June 7th, pushing the price below its short moving average (a technical indicator for gauging momentum) and into bearish territory on the Relative Strength Index (RSI). This suggests a potential lack of buyer confidence even before the wider market correction.
As of today, Dogecoin continues to trade below its short moving average, which now acts as resistance around the $0.15 price point. The RSI remains below 40, further solidifying the bear trend.
The price decline has also impacted Dogecoin’s market capitalization, a metric indicating the total value of all circulating coins. Data shows a significant drop from over $23 billion before the downturn to its current value of roughly $20.5 billion. Despite this decline, Dogecoin(DOGE) maintains its position as the leading memecoin in the market.
Also Read: Dogecoin (DOGE) vs. Utility: Ripple CEO reignites Debate on Crypto Purpose (61% DOGE Up in 2024!)
Interestingly, Dogecoin’s trading volume has surged over 38% in the last 24 hours, exceeding $940 million. However, this increase in volume might be deceiving. AMBCrypto’s analysis of on-chain data suggests this surge is likely driven by sellers, not buyers. This explains the price decline despite the higher volume – there are simply more coins being sold off than bought.
So, what’s next for Dogecoin? While the short-term outlook appears bearish, the cryptocurrency market is known for its volatility. Whether DOGE can reverse course and climb back above resistance or continue its downward trajectory will depend on several factors, including broader market trends and any potential positive developments specific to Dogecoin itself.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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