In today’s trading session, the Dogecoin price hit a three-month price low when it traded at a $0.0055 price level in the early hours. However, the past few hours of intraday trading have seen the price starting to go up. Today’s price drop, however, is not surprising. Last week, Dogecoin price dropped by almost 10 per cent, closing the markets with a 9.83 drop in value.
The current Dogecoin price drop has been an extension of a long-term trend that is being seen in the entire cryptocurrency industry. Today, data shows that the industry is down by 5 per cent, continuing a bearish trend that has persisted throughout the month. Dogecoin, being significantly correlated with the industry trend, has also been dragged downwards despite making significant milestones and continuing to grow in popularity.
Another factor that may not be currently playing in Dogecoin’s hands is its continued use of proof-of-work. Last week, Ethereum migrated to a more energy-efficient proof-of-stake, which saw Dogecoin rising to become the second largest proof-of-work cryptocurrency behind Bitcoin.
However, this has also put a lot of pressure on Dogecoin to also upgrade to POW. Despite the pressure, some Dogecoin users saw it as positive news, with one stating he was in disbelief a memecoin had risen to the pinnacle of the cryptocurrency industry.
Dogecoin Price prediction
In today’s trading session, the Dogecoin price started with an aggressive push to the downside. However, in the past few hours, the price has started to come up and is almost recovering. I expect by the end of the session, the Dogecoin price to be trading above the opening price.
However, my long-term Dogecoin price prediction is still to the downside. I expect the prices to continue falling and possibly trade below the $0.0055 price level. There is a high likelihood that we might see prices pushing below the $0.049 support level in the coming sessions, partly due to the general bearish trend of the cryptocurrency industry. This analysis will be invalidated should the prices trade above the $0.065 price level.