After having had a tremendous start to the year, DOGE is now unable to resume its upward trend. Why is Dogecoin falling? Is it possible that it will start to rise soon? In this analysis we discover it.
At the time of this writing, DOGE is trading at $ 0.21, accumulating a loss of 6.37% in the last 24 hours and 8.59% in the last 7 days.
Its market capitalization is $ 28.45 billion, making it the 10th largest cryptocurrency.
Why is Dogecoin falling?
We can sum up the downfall of the cryptomeme in one simple sentence: the fever is over, for now at least.
It is not just Dogecoin that is falling, Shiba Inu is also embroiled in the same trend. This makes us think that fashion has taken a break.
The current scenario of this currency goes hand in hand with the little volatility that exists in the cryptocurrency market in general, and with profit taking after such abrupt price increases in this segment of memecoins.
According to Google Trends, the search interest of the term Dogecoin is currently 4 on a scale of 100. The maximum peak was reached in May when the price rose completely parabolically, when the interest was so much that it surpassed the searches of the term Bitcoin.
Currently, the interest in the term Dogecoin is even lower than that of SHIBA, which tells us about a big drop in the popularity of this memecoin.
It is going away?
The probability that DOGE will disappear is extremely low. We are talking about a coin that was born in 2013 and has remained among the most outstanding in the ecosystem for several years.
Now that he has managed to enter the TOP 10, it is more difficult to think that he can disappear. The community behind this coin is created, and as long as it continues to exist, it will not let the price go to zero.
However, we are talking about a project with almost nothing behind it, other than laughter. It is highly unlikely that the big gains we saw in previous months will continue to repeat itself over and over again.
At $ 0.21 that’s $ 28.62 billion of market capitalization that Dogecoin currently owns. To think that the price is going to reach $ 1 as many who hold this coin think, is to expect that its capitalization will exceed that of Binance Coin, and I at least do not see this too likely, much less sustainable.
Even so, we cannot rule out that these coins will surprise us again in the near future.
DOGE technical analysis
In the weekly chart of Dogecoin we see how the price falls continuously, without getting support yet.
However, we can also note that the fall is not really too worrying, as it is in a larger range, which for the moment is nothing more than the rest after a big bullish rally.
The dominant force is still clearly from the buyers, and as long as the support zone between $ 0.18 and $ 0.13 holds, the bulls are likely to manage to regain control soon.
To confirm that an interesting rally is going to occur, resistance at $ 0.34 must be broken; However, for those who trust this currency, the fact that it is not marking lower lows is already a good sign of strength.
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