Dogecoin Sees 0.9% Price Drop to $0.069055: Key Takeaways

Dogecoin, the popular meme-inspired cryptocurrency, has seen its price decline 0.9% over the past 24 hours. DOGE is currently trading at $0.069055, down from $0.069764 yesterday.

DOGE Trails Bitcoin and Ethereum Momentum

Despite the slight 24-hour drop, Dogecoin has managed a 6.5% gain over the past week. However, DOGE has failed to keep pace with Bitcoin and Ethereum over the same period.

Bitcoin has surged 11% in the last 7 days, while Ethereum has posted a 12% weekly gain. This indicates DOGE is lagging behind the momentum of the two dominant cryptocurrencies.

Dogecoin's relative underperformance can be attributed to its lack of major project updates and real-world utility compared to Bitcoin and Ethereum. DOGE relies heavily on hype and social media buzz to drive interest.

Near-Term Support May Be Tested

The minor pullback today could be a sign of potential near-term weakness ahead for Dogecoin. The next key support zone sits around $0.065.

If the selloff accelerates, DOGE could dip towards the 50-day moving average, currently near $0.058. This longer-term moving average could provide a backstop and attract buying interest from bulls.

However, if $0.065 fails to hold, DOGE would face a bearish breakdown, opening the door for a decline back towards the 200-day MA around $0.049. Overall, traders should keep an eye on $0.065 as an important pivot level.

Can DOGE Build on Last Year's Rally?

Dogecoin had a massive breakout in 2021, gaining over 3,500% on the year. However, it has struggled in 2022, shedding over 60% from its all-time high of $0.73 hit in May 2021.

For DOGE to stage a renewed rally, it needs to see substantial adoption progress, like perhaps a long-rumored Dogecoin integration on Twitter following Elon Musk's buyout.

Alternatively, another wave of viral social media hype could spark the strong upsurges of 2021. But fundamentals will need to improve to make 2022 gains sustainable.

Is This Meme Coin Heading to Zero?

Given its lack of real-world utility and reliance on internet culture, some have predicted Dogecoin is headed to zero over the long term. Meme hype can fade as quickly as it emerges.

However, DOGE retains a loyal following within the crypto community, and its low price has made it popular for trading and tipping online.

Demand from supporters and speculators has so far provided a floor preventing DOGE from vanishing into obscurity. While unlikely to reach zero soon, Dogecoin's ceiling may be limited without meaningful development and adoption improving underlying value.

Subscribe to BTC Peers

Don’t miss out on the latest issues. Sign up now to get access to the library of members-only issues.