Dogecoin is up by a percentage point in today’s trading session. Despite the price gain, the crypto is still in an aggressive bearish long-term trend. Last week, it dropped by more than 10 per cent. This month, it is down by almost 8 per cent, and since the year started, Dogecoin is down by 61 per cent.
There are many factors that have contributed to the current Dogecoin price crisis. Dogecoin is a memecoin, meaning it was not built with a utility on the mind. Until last year, the crypto had been obscure. However, after receiving attention from Elon Musk, the richest person on earth and CEO of Tesla, the crypto started a resurgence.
By mid-year, the crypto was up by thousands of times. The resurgence was also in tandem with a strong bullish move throughout the cryptocurrency market. However, in 2022, everything that can go wrong for Dogecoin and most memecoins has gone wrong. Today, the current trend of the cryptocurrency industry is bearish.
The hype for memecoin, which was partly fueled by social media activity, has also cooled down, and Dogecoin, being a memecoin, has seen its trading volume plummet. The result of the combination of all these factors has been a decline in Dogecoin prices throughout the year, especially recently.
Dogecoin price Prediction
Despite today’s price going up by a percentage point, my long-term Dogecoin price prediction is to the downside. I expect that, in the next few trading sessions, the Dogecoin price will trade below the $0.055 price level. There is also a high likelihood that we may see prices starting a new trend that may see prices dropping to as low as the $0.050 price level.
My analysis is also not ruling out prices hitting the $0.049 support level. Should the prices hit the support level, it will be a clear signal that the crypto will possibly continue dropping for weeks. My analysis will, however, be invalidated by a trade above the $0.070 price level.