Dogecoin Price Drop Signals Potential Major Crash
Dogecoin has been facing challenges lately, with its price stuck in a downward trend for a while. This ongoing decline has become a big concern for investors, creating a psychological barrier thats hard to ignore. Many are wondering if and when Dogecoin will recover, leaving them uncertain about the future of their investment. Let's take a look at this Dogecoin price article in more detail.
How has the Dogecoin Price Moved Recently?
Dogecoin is currently priced at $0.09762, with a 24-hour trading volume of $46.16 billion and a market cap of $14.23 billion, giving it a market dominance of 0.72%. Over the past 24 hours, the price of DOGE has seen a slight increase of 0.11%.
The highest price Dogecoin has ever reached was on September 6, 2024, when it hit $0.738595. On the other hand, its lowest recorded price was on May 7, 2015, at just $0.00008547. Since reaching its all-time high, the lowest price Dogecoin has fallen to is $0.049701 (cycle low), while its highest point since that low was $0.227362 (cycle high). Currently, market sentiment around Dogecoin is bearish, and the Fear & Greed Index stands at 22, indicating "Extreme Fear."
Dogecoin's circulating supply is 145.80 billion DOGE, with a yearly supply inflation rate of 3.48%, meaning 4.90 billion new DOGE were created in the past year.
Why is the Dogecoin Price Down?
Dogecoin's price decline can be attributed to several key factors, the most notable being its inability to hold above the critical $0.1 mark, which has added psychological pressure on investors. This threshold is significant as it often signals a shift in sentiment; falling below it has fueled uncertainty and hesitation among traders.
The prolonged downtrend indicates deeper market issues, with Dogecoin failing to build any sustainable momentum over the past months. This lack of recovery suggests that broader market forces are at play, keeping DOGE under pressure and vulnerable to further declines.
From a technical perspective, Dogecoin price action shows a consistent inability to break past key resistance levels set by its moving averages, especially the 200-day EMA, which is significantly higher than its current price. This is a clear bearish signal, pointing to a weak long-term outlook.
The fact that DOGE has not been able to rise above these resistance points adds to the growing concern that recovery might not be imminent. With market conditions unfavorable and sentiment showing signs of extreme fear, Dogecoin may continue its downward trajectory unless it can regain key levels of support and spark renewed interest among investors.
Will Dogecoin Price Rebound?
While Dogecoin has seen a 54% price increase over the past year, outperforming 54% of the top 100 crypto assets, its path to a sustained rebound remains uncertain. One factor that might work in DOGE's favor is its high liquidity due to its large market cap, which keeps it an attractive option for traders and investors.
However, despite this positive performance, Dogecoin has still been outperformed by Bitcoin and remains heavily impacted by the broader market's bearish sentiment.
Technically, Dogecoin is trading well below its 200-day simple moving average, indicating a persistent downtrend. With only 14 green days in the last 30 days (47%), the momentum hasn't shown signs of a strong recovery, and the asset remains down by 87% from its all-time high.
These factors suggest that while DOGE has had a positive price increase over the past year, it is still facing significant resistance and has yet to demonstrate enough strength to trigger a substantial rebound.
Coupled with its 3.48% yearly inflation rate, which adds to the circulating supply, Dogecoin may struggle to regain its previous highs in the short term. However, if broader market conditions improve and DOGE can break through key resistance levels, a gradual recovery could be possible.
Read more: https://cryptoticker.io/en/dogecoin-price-drop-major-crash
Text source: CryptoTicker
