With Dogecoin falling over 88% since its peak in May 2021, it continues to head downwards to the tune of 44% in just two months of 2022. With such a negative-headed price trend, is it a time to acquire more of this coin or indicate a possible doom for Dogecoin? Dogecoin at present carries a market capitalization of over $15.85 billion in March 2022, after losing close to 90% of its peak value.
Dogecoin is now headed towards a clear downtrend after a terrific upside movement in 2020 and 2021, where it moved up by over 25000% in this short time frame. While most of the value was generated because it was a hype coin, this, in turn, gave birth to the idea of meme coins offering multi-billion valuations.
Dogecoin Price Analysis
The current price movement of Dogecoin is such that the previous support level of $0.1908 is 28% above the currently traded value, while the next historical breakout support level lies 78% below the current level. Such an imbalance price action shows the lack of profitable risk to reward ratio for Dogecoin. Under such a condition, investing in Dogecoin can surely be beneficial, but the downside could be further devastating.
Despite Dogecoin falling since May 2021 peaks, the momentum wasn’t considered as a weakness; rather, we considered it the same as a profit booking because of very high valuations. But as Dogecoin began to breach its 200 DMA curve with little to no attempt of regaining this level in the immediate time frame, there lies a very small scope for its survival now that the 200 DMA curve has also been moving downwards. The first sign of upside movement would be shown by a parabolic 200 DMA curve followed by a rise in the last traded value of Dogecoin. Even its Relative Strength Index is now showing a level close to oversold levels with breakouts mostly limited to the 60s or moderately positive price trend. Another alarming situation can be visible as the decreasing transactions.