Dogecoin dropped by 18 per cent in yesterday’s trading session, continuing a long-term bearish trend that has seen it lose 37 per cent of its value since the year started. In today’s trading session, the cryptocurrency is showing signs of recovery, gaining more than five per cent. However, we are still in the early periods of the trading session, and there is a high likelihood that the session will close with Dogecoin losing its value.
Why is Dogecoin Dropping
The current drop in the prices of Dogecoin is following a long-term trend in the cryptocurrency industry. In the past 24 hours, the global market capitalization of the cryptocurrency industry has fallen by more than 7 per cent, bringing the total to $1.42 trillion.
The past few trading sessions have also seen Bitcoin prices fall below $30,000 for the first time since July 2021. Data from CoinMarketCap also shows that only four cryptocurrencies, out of over five thousand, have had a net gain in the market in the past seven days. Out of the four cryptocurrencies, only one has had over five per cent price gains during that period. The rest of the cryptocurrencies are all down during that period, with the biggest drop being Terra, which has lost 69 per cent of its value. Bitcoin has lost 19 per cent during that time, with Ethereum losing 18 per cent.
Dogecoin Price Prediction
The chart below shows Dogecoin prices gaining in the market in today’s trading session. The chart also shows that the cryptocurrency is still in a long-term bearish move. However, Dogecoin has traded within a support and resistance level of $0.11 and $0.16 in the past few weeks. Until yesterday, Dogecoin broke the support level to the downside. However, the prices have returned inside the support and resistance market structure to trade at $0.11.
However, for Dogecoin price prediction, the price movement will be driven by fundamental factors rather than the technical supply and demand chart analysis. Today, the cryptocurrency industry is in a nosedive. Being one of the largest cryptocurrencies, Dogecoin is also in a strong bearish move. Therefore, despite today’s gain in prices, I expect the bearish trend to continue. There is a high likelihood that Dogecoin will continue setting new price lows below the $0.08 price level.