- DOGE is trading at $0.3454, marking a loss of over 9%.
- Elon Musk’s ‘Doge to Mars’ comment fails to ignite a rally for the meme coin.
The crypto market failed to turn green even a day after Donald Trump’s inauguration. The largest asset, Bitcoin, continues to stay at $102K. Particularly, the prominent meme coin, Dogecoin (DOGE), has seen a notable price drop of over 9%.
The recent bullish price pattern of Dogecoin price has signalled a potential breakout. The crypto analysts had a promising prediction, forecasting the meme coin could reach new highs.
After the U.S. election and Elon Musk’s endorsement, DOGE has notable price volatility. Elon Musk has triggered discussions in the market with his recent comment—“Doge to Mars”—during Donald Trump’s inauguration. Despite this, Dogecoin chose to trade on the downside.
DOGE opened the day trading at $0.3824. Eventually, the meme coin bears took control and the price slipped toward a low of $0.3359. At the time of writing, the meme coin traded at $0.3454, with the market cap reaching $51 billion.
Furthermore, the market observed a liquidation of $22.13 million worth of DOGE during this timeframe. It is crucial to note the daily trading volume of the meme coin resting at $7 billion.
Will DOGE’s Decline Continue or Reverse?
DOGE’s four-hour trading session showcases the downside correction. If the meme coin fails to hold $0.3386, the asset could fall toward the nearby $33 mark. The meme coin might fall steeper to its previous lows if strong selloffs resume.
However, the emergence of bullish pressure will invalidate these losses. If the meme coin holds the current price, it could drive the price to $0.35. DOGE’s extended gains might trigger a further uptrend and propel the asset to jump toward the $0.3587 mark.
The technical indicators of DOGE unveil the in-progress bearish momentum. The Moving Average Convergence Divergence (MACD) line and the signal line are below the zero line. This indicates that the meme coin is in a downtrend, with selling pressure outweighing buying pressure.
Moreover, the Chaikin Money Flow (CMF) indicator, which estimates the capital flow, is found at -0.10. It suggests a negative money flow, signalling the weakness of the meme coin. In the meantime, DOGE’s daily trading volume has plunged by over 30.98%.
The meme coin’s daily relative strength index (RSI) at 37.46 infers weak momentum and leans toward the bearish territory. Also, it has room to decline further before being considered oversold. Besides, DOGE’s daily frame reveals the short-term 9-day MA below the long-term 21-day MA.
Disclaimer: The opinion expressed in this article is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.
