Dogecoin (DOGE) experienced a minor 0.38% price drop over the past 24 hours, with the meme-inspired cryptocurrency now trading at $0.06296. This continues a slight downward trend for DOGE over the past month, as the crypto asset struggles to maintain positive momentum.
Currently, Dogecoin has a market capitalization of $8.85 billion, positioning it as the 8th largest cryptocurrency by market value. In the past 24 hours, DOGE saw $80.87 million worth of trading volume.
Analyzing the percentage changes across varying timeframes shows DOGE has steadily declined over the past month, but has been relatively stable recently. Over the past 7 days, DOGE is down just 1.75%. However, zooming out shows a 19.72% loss over the past month and a more significant 22.59% drop over the past 6 months.
Some factors contributing to Dogecoin's downward price trajectory include decreased hype after the SNL event, broad weakness in the crypto market, and competition from other meme coins. The highly anticipated SNL event in May 2021 brought enormous hype and speculation to DOGE, propelling it to an all-time high. With that event now firmly in the rearview, hype and social media chatter around DOGE have cooled off.
Additionally, the overall crypto market has struggled in 2022 amidst macroeconomic uncertainty. With altcoins tightly correlated to Bitcoin's price action, DOGE has been dragged down as Bitcoin trades sideways. Finally, competition from meme coins like Shiba Inu and general fatigue around dog-themed cryptos may be dampening interest in DOGE specifically.
Short-Term Dogecoin Price Prediction Based on Current Data
Given the lackluster technicals and fading hype, my prediction is that DOGE will continue declining towards the $0.05 level over the next couple weeks. The meme coin is facing strong resistance around $0.065 and has struggled to regain the psychological $0.07 level.
Unless a new viral social media event spontaneously emerges, I expect DOGE will slowly bleed out towards the $0.055 to $0.05 range in the near-term. Volume and social engagement around DOGE remain relatively muted, signaling waning interest in the formerly hot crypto. Only a shock event or massive crypto rally could change Dogecoin's technical picture in the short-term.
How Can Traders Use Moving Averages to Inform Dogecoin Trades?
Analyzing moving averages is a common trading strategy to identify support and resistance levels. As Dogecoin shows substantial weakness, its moving averages can act as dynamic support and resistance to guide trades.
Currently, DOGE is trading below its 50, 100, and 200-day moving averages. The 50-day MA sits around $0.075, while the 200-day MA is near $0.10. These now act as tough resistance levels where sellers will likely emerge on any rally attempts.
Traders can watch to see if DOGE can break above its 50-day MA at $0.075. If so, that signals a potential trend change to the upside. The 200-day MA at $0.10 would be the next key test.
On the downside, the recent swing low around $0.055 stands out as support. If DOGE breaks below $0.055, it signals a further deterioration in upside momentum. Wise traders will let the moving averages and support/resistance levels dictate their entry and exit points.
In summary, Dogecoin faces an unfavorable technical picture and fading hype levels. My analysis suggests DOGE will continue slowly bleeding out towards the $0.05 level over the coming weeks barring any shock events. Savvy traders can employ tactics like monitoring moving averages to properly time entries and exits. While DOGE's long-term future remains uncertain, its near-term outlook appears relatively bearish.