Last year, Dogecoin (DOGE) was the cryptocurrency with the biggest market cap and the fastest transaction times. Now, at the end of 2018, it is down to number two behind Bitcoin. The cryptocurrency market has experienced a significant downturn in the past month, and even large and stable currencies like Bitcoin and Litecoin (LTC) have lost a large percentage of their market cap, compared to Dogecoin’s relatively stable market cap.
Dogecoin had a really bad time in the middle of January. Amid all the excitement, the price went up by over 50% within the first 24 hours of trading. However, it quickly settled down, and had a steeper decline. This is not good for DOGE, as there are only so many times you can make a bullish day of it. Despite the price decline, DOGE is still in the green when it comes to market capitalization.
Dogecoin’s price has been in a downward spiral for months now, and it looks like its peaking out. Don’t get excited by the Doge rally yet: it is likely to end up in a vicious fall that destroys the value of your investment.
At the time of writing, Dogecoin is in a fragile situation.
While purchasers have managed to avoid bear salvos in recent days, the upswing looks to be feeble, and bulls appear to be tired.
As a consequence of this weakening, prices have retraced from their August 2023 highs.
Worse, for the first time in over four weeks, DOGE prices are on the verge of falling below the key support level—the 20-day moving average.
It may be a watershed moment for Dogecoin bulls, as well as the start of another wave down, echoing the price movement of Q2 2023.
That’s why Dogecoin chartists are keeping a careful eye on how today’s close will turn out, as well as the amount of activity behind the down bar.
Market Value and Performance of Dogecoin
The Dogecoin market cap is now down 10%, and DOGE prices are currently behind the USD, ETH, and BTC on the previous trading day.
The steep drop in trade volumes is discouraging–and this is a major source of worry.
DOGE trade volumes have dropped almost 25% in the past 24 hours, reaching $2.5 billion, according to monitors.
Given the current position of DOGE price movement, it is a significant contraction, indicating trader apprehension and fear of more losses.
Bulls in Dogecoin must recover from the 20-day moving average to above $0.35 in order for the trend to continue.
Furthermore, the upswing must be accompanied by strong trade volumes, showing optimism and trust in the rise.
Though such a rise is unlikely to last more than a few days, it should completely reverse August’s losses and push prices back above the 20-day moving average, indicating strength.
If not, Dogecoin prices may fall below $0.15, a possibility if today’s bulls don’t soak up the early-week selling pressure, reversing August 24 losses.
Due to the uncertainty, traders are forced to keep their cards close to their chests, ideally until a clear trend emerges.
Resistance to Dogecoin at $0.35
The importance of the resistance line was noted by a trader on Twitter.
$DOGE Bulls have the upper hand, as shown by the rising 20-day exponential moving average ($0.28) and the RSI in the positive zone. Buyers will attempt to continue the uptrend by pushing the #DOGEUSDT pair over $0.35 if the price stays above $0.29 for a few more days. pic.twitter.com/lislOAQ6oy
— August 23, 2023 (@smallcappick) RESEARCH 24/7
The expert believes that a strong closure over $0.35—the liquidation line that marks the accumulation of the previous several days—will confirm the DOGE/USDT rise.
For the time being, the drop below the flexible support level of the 20-day moving average confirms the fading uptrend and lower lows against the upper BB of the previous few days.
DOGE is still bullish, with a $1 target.
Meanwhile, despite the selling pressure, another trader believes the trend will continue to the higher in the coming days. The analyst’s goal is $1, the point at which DOGE and USD will be equal.
$DOGE’s brief fall to $0.27 was soon recovered to $0.29, and the stock is now trading below the pressure level at the 120-day SMA, indicating that the positive trend is continuing. $DOGE, $ 1 target, $ 0.255 support, $ 0.31 pressure @elonmusk pic.twitter.com/ID2zvVX1KG #dogecoin #DOGEUSDT #Dogecoins
August 24, 2023 — Crypto Line (@CryptoLinns)
Despite its high goal, Dogecoin bulls will only be able to reach there if they overcome imminent liquidation obstacles and $0.80.
Until then, candlestick structure suggests weakness, despite the fact that the project’s fundamentals are strong.
Dogecoin’s “Mission to the Moon”
BUT ONLY AFTER THE BULLS HIT $0.35.
One trader on Trading View reiterates the importance of the August 2023 highs.
According to the trader, Dogecoin bulls must break through this level in order to establish fresh support at $0.35, a basis for a moonshot to $0.45—nearly half of H1 2023 high.
Trading View provided the charts.
Disclosure: The author’s opinion is his or her own. Make your own investigation.
Dogecoin manipulation is an old internet meme that has been around for a long time and recently has seen a lot of attention (and, before you ask: yes, we will be linking to this article later in our post). However, there is another meme that is getting traction lately: dogecoin is about to fall to zero.. Read more about dogecoin price and let us know what you think.
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