The Dogecoin price has traded within a narrow range of between $0.056 and $0.071 since August 20. Today, with its price up by 2 per cent, the Dogecoin consolidation looks poised to continue the more than two months trend of sideways trading.
Part of the reason why we have seen Dogecoin prices continue to struggle is its hype dying down, resulting in a significant drop in its trading volume. At its height, Dogecoin could average more than $10 billion daily trading volume. However, today, most trading sessions end up with a trading volume of less than $200 million. As a memecoin, failing to generate enough traction in the market means the collapse of the crypto due to its lack of an ecosystem to support it, and therefore relying heavily on its perceived storage of value functionality.
Another reason we have continued to see the Dogecoin price struggle in the market is the recent bear market of the cryptocurrency industry. Being a memecoin, Dogecoin is significantly correlated with the industry’s trend. Therefore, any time the industry is struggling, the Dogecoin price has also been dragged down, causing or forced to trade in a sideways market, contributing to the current horizontal trend.
Dogecoin Price Prediction
Looking at the chart below, we can see Dogecoin price has traded in a sideways market for the past two months. We can also see that, for most of this time, the crypto has lacked momentum and volatility to establish a trend, and hence Dogecoin price has stayed within a narrow range of $0.056 and $0.071.
The chart also shows the past week’s price action being extremely choppy. Therefore, my Dogecoin price prediction expects the current bearish sideways trend to continue. For the next few weeks, I also expect the Dogecoin price to continue trading within the narrow range of between $0.056 and $0.071. However, a move below or above the range will signal a start of a new trend and invalidate my sideways trend analysis.