Dogecoin was unfortunately not created for any purpose, and instead, it was driven to popularity because of its meme nature and Elon Musk’s tweets. With both of them gone from our equation, the future of Dogecoin looks grim, as it neither holds any real value such as Bitcoin nor is it the best blockchain cryptocurrency out there.
While other latest developed blockchains are catching up to Dogecoin in terms of popularity and feasibility, DOGE price is still holding the 7th position and currently trades below XRP with a market capitalization of $34 billion. Additionally, Dogecoin’s price is presently trading at below 60% valuation from its all-time high of $0.70.
It would be too early to declare Dogecoin as a sinking ship, but one should stay cautious as going against the trend doesn’t mean DOGE/USD will start rising anytime soon. The positive element being the Dogecoin valuation, having crossed multiple swing resistance to reach the current levels.
Dogecoin Price Analysis
Dogecoin has entered into a spiral trend in a flat bottom pattern. The upside is consistently declining, with the downside taking support from the immediate support levels. Such patterns are considered ominous for the price momentum of any asset. This indicates a small buying happening at support levels, while people are booking profits as it jumps higher.
There has been a formation of a flat bottom pattern for more than two weeks. It only indicates that people are reeling in their profits and are not confident in DOGE scaling to fresh highs anytime soon.
A consistent downside below 200 DMA levels can initiate a sell-off so far unseen in the Dogecoin space. For buyers, Dogecoin has support at $0.2741 levels, followed by its 200 DMA at $0.2269 and long-term support at $0.2097. On the upside, it faces a resistance at $0.3321 levels, which can only be crossed after a renewed buying sentiment in the Dogecoin.
RSI on daily charts has climbed down from overbought zones to neutral zones and current places at a histogram level of 49. So once again, we are back to the average daily volumes witnessed before the August 04 breakout candle.
