Dogecoin Struggles as Meme Coin Frenzy Fizzles Out: Will DOGE Price Drop 99%?
The price of Dogecoin has fallen by 4% in the past 24 hours, dropping to $0.1211 after the FOMC decided not to reduce rates at its meeting yesterday.
This drop is in line with the market’s fall of 3%, with DOGE also down by 3% in a week and 1.5% in a month.
Despite these falls, the meme coin holds on to a 57% gain in a year, although this is considerably lower than the annual gains for other major tokens.
And while it’s arguable that DOGE’s underperformance puts it in a position to rebound strongly, it’s also arguable that it may be suffering from a long-term decline.
As with many other tokens today, DOGE can at least point to having an oversold position that should normally result in a rebound.
Its relative strength index (purple) fell below 30 this morning, and has begun to rise once again.
DOGE’s 30-day average (orange) has also descended well below its 200-day (blue), reaching a low position that often turns into a rally.
Helping with optimism are the coin’s support (green) and resistance (red) levels, which are converging towards each other.
However, pessimists may draw attention to Dogecoin’s low volume, which stands at $700 million today.
This contrasts unfavorably with the levels – between $4 billion and $7 billion – it recorded in late March, when it reached its high for 2024.
It’s therefore entirely plausible to suggest that traders, including whales, have lost interest in Dogecoin, with other alts and meme coins overshadowing it.
Over the years, $DOGE (Dogecoin)'s Log Breakouts (displayed) have ALWAYS led into massive upsides and prices of, have done so again with a break currently holding!
Now, based on the previous 2 breakouts, each of these runs have consecutively gotten larger, and if we are to see…
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