Dogecoin price has been in a strong consolidation phase in the past few days as demand for cryptocurrencies waned. DOGE was trading at $0.082, where it has been in the past few days. This price is about 14% above the lowest level this month. This price action is in line with that of other popular coins like Bitcoin and Ethereum.
Why is DOGE struggling?
Thee are two main reasons why the DOGE price has been under pressure. First, Dogecoin price has slumped because of the ongoing crisis in Twitter. A few weeks after Elon Musk acquired the company, there are real chances that the company could go bankrupt in the next few months.
The firm has seen its total debt grow from $596 million before Musk acquired the company to $13 billion now. It will need to pay at least $9 billion in interest to banks and hedge funds. This is happening at a time when the company’s revenue is expected to slow as advertisers pause. Worse, the company has lost money in eight years of the past decade.
Dogecoin price has fallen because investors were expecting that Elon Musk will integrate the coin to Twitter’s ecosystem. Now, with the company struggling, such action will likely be paused.
Second, Dogecoin price is struggling as investors react to the ongoing revelations on FTX. The company, which was the second-biggest exchange in the world, collapsed this month. As such, there are lingering fears of a crypto contagion. Also, the crypto fear and greed index has plunged to the extreme fear level of 18. This is a sign that investors are afraid of buying cryptocurrencies.
Dogecoin price forecast
DOGE has been in a consolidation phase in the past few days. It was trading at $0.082, which was along the descending trendline shown in black. The price is slightly above the important support level at $0.0722, where it struggled to move below on November 21 and November 10. It has moved slightly above the 50-day moving average. The Relative Strength Index moved above the neutral point.
Therefore, more upside will be confirmed when it moves above the descending trendline. If this happens, the next key resistance to watch will be at $0.10. A drop below the support at $0.077 will invalidate the bullish view. Use the highly accurate InvestingCube S&R indicator for an up-to-date Dogecoin forecast.