Dogecoin is the most preferred meme coin in the crypto world, backed by Tesla’s CEO Elon Musk. All the meme coins are mainly influenced by news in the market. Due to global scenarios and a lack of contribution from retail investors, the crypto market has been in a downtrend.
World major indices and crypto markets are trading in red after the announcement of the US Federal Reserve rate hike. Due to inflation and supply chain management issues, even long-term investors are selling their stakes, which suggests huge volatility and bearishness in the next few months, especially in crypto markets.
It is the time to check your portfolio, pick the best assets like Ethereum and Bitcoin for long-term holding, and sell the small caps to minimize the loss in the short term.
Retail investors are selling their stakes in panic, especially after the Terra (LUNA) fiasco. As a decentralized meme coin, DOGE may not perform well in the future. However, any tweet from Elon Musk can disrupt all fundamental and technical views on this coin.
At the time of writing, DOGE was trading around $0.0512. Like all other leading cryptocurrencies, it is struggling in a bear’s grip. No one knows how long it will continue. It can settle in the next four months or continue for up to four years.
Indeed, it is tough to find any support level at this stage, and there is no positive news related to Dogecoin. After twitter’s stake-related news, the DOGE corrected the price, and now it is trading in an oversold zone.
Most of the technical indicators are bearish in the short term. It has broken the lower range of Bollinger Bands, which suggests extreme bearishness, supported by the MACD chart.
On the weekly chart also, it has broken the lower range of the Bollinger Bands, but we can find support around the $0.05 level. Considering the market volatility and fear index, we do not think it will sustain the level.
It is not the ideal time to invest in Dogecoin until any real positive news comes into the market. However, there is news of launching new projects of Dogecoin, but it will not make any difference in the short term.
The market is volatile and will continue for the next few months. The leading cryptocurrencies are in a bear’s grip. You have to wait for the right opportunity to invest in Dogecoin, but we do not recommend it to invest for the long term.