DOGE Price Analysis: Why is Dogecoin Crashing?
Doge Price Analysis: Dogecoin price experienced an 11% drop in price late Monday night going into Tuesday. The price dropped as low as $0.113, the lowest since February. The price of Dogecoin briefly recovered and is now trading around $0.1218 at press time. Despite the fall in the value of the general market, DOGE price’s current support proved to be strong. Dogecoin may need to make a decision soon that might influence the next direction its price takes.
DOGE Price Analysis: Decision Time for Bulls
DOGE price was previously trending inside a giant descending triangle. The base of the triangle provides robust support for DOGE but prevailing bearish market conditions created by Bitcoin may render it useless. The support has been tested three times before and investors are hoping it will hold water now. Descending triangles are generally not bullish, but if they resolve upwards, it’s usually explosive.
The price of DOGE is trending below the 50-day and 200-day simple moving averages (SMA), which is not bullish for the asset price. Should a bounce happen at this price point, DOGE may break out of the current market structure and make for $0.237. On its way up, the dog-themed meme coin may encounter resistance around $0.182 and $0.206. On the flip side, in a downward scenario, the DOGE price may find further support around $0.096 and $0.072.
The Relative Strength Index (RSI) has dipped to 29 and is officially in the oversold (OS) region. Overbought (OB) and oversold (OS) regions are characterized by extreme price action momentum. Due to this, the price of DOGE may witness some non-bullish price action volatility in the coming days. Nevertheless, RSI (14) at 29 is an indicator that DOGE has officially bottomed and accumulation may begin from this point onward.
Doge Price Drops in General Market Downturn
The crash of DOGE’s price was part of a market-wide crash instigated by Bitcoin. The king of cryptos slid below a crucial support level late on Monday evening, causing the entire crypto market to drop. The total market cap of the crypto industry is down 3% in the last 24 hours, per CoinGecko.
Despite these numbers, the Bitcoin Fear & Greed Index remains at 74 (Greed). This has the crypto community questioning whether this important market sentiment analysis tool is rigged.
Bottom Line
Bitcoin has an overwhelming effect on the markets, as its market cap dominance has also increased in the last week from 51.5% to 52.1%. Dogecoin investors are keeping a close eye on BTC price action as it will mark the difference between profit and loss for them.
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