The Dogecoin price momentum has faded. DOGE is trading at $0.2800, which is about 20.45% below the highest point in July. As a result, its total market value has declined to more than $36 billion. It is slightly below Ripple, which is valued at more than $52 billion. It is also slightly above Solana, the fast-growing coin that is valued at more than $28 billion.
Dogecoin momentum has waned
The Dogecoin price has been relatively bearish in the past few weeks as a draught on celebrity endorsements continue. As a popular meme coin, Dogecoin’s price does well when there is a a major endorsement from the likes of Elon Musk and other celebrities. Traders often see this as a sign of validation that the coin is a real thing.
At the same time, the Dogecoin price performs well when there is strong chatter about it in social media platforms. A closer look at the coin in Twitter shows that the number of people talking about it has declined substantially recently. Similarly, as shown below, the number of mentions in the Wall Street Bets Reddit forum has declined. Instead, the most actively mentioned coins are Ethereum, Bitcoin, Cardano, and Solana.
At the same time, the Dogecoin price has remained intact as the rest of the cryptocurrency industry pauses. Indeed, Bitcoin saw minimal market action during the weekend as its price remained slightly below $48,000. The total market cap of all cryptocurrencies tracked by CoinMarketCap has dropped to more than $2.70 trillion.
Dogecoin price prediction
The four-hour chart shows that the DOGE price soared to a high of $0.3517 in July this year. Since then, the coin has declined by about 20% from its highest point in July. It is currently slightly above the 38.2% Fibonacci retracement level. Also, the coin is slightly below the 25-day and 50-day moving averages.
Therefore, in my view, I suspect that the path of the least resistance for the coin is to the downside. If this happens, the next key level to watch will be the 50% retracement at $0.2560. On the flip side, a move above $0.300 will invalidate this view.