2021-03-23 05:52:16

Here’s Why DOGE Momentum Has Faded

The Dogecoin price has lost momentum recently. The DOGE is trading at $0.0550, which is 38% below its all-time high of $0.0885. Its market capitalization has dropped to more than $7.12 billion, making it the 17th-biggest digital currency in the world.

What happened: Dogecoin has been relatively muted in the past few weeks. Indeed, its price has been relatively stagnant between $0.0634 and $0.0535. This price action is mostly because of lack of commentary and mentions about the coin in the past few weeks. Indeed, a look at its social media mentions shows that they have dropped sharply after peaking in January. 

Dogecoin social media mentions

Further, Google Trends data shows that the number of people searching for Dogecoin and Dogecoin prices have declined.

Dogecoin and Dogecoin price Google trends

In the past, the price of Doge has corresponded with mentions in social media platforms like Facebook, Twitter, and Reddit. This is in part because the overall use case for the coin is usually relatively limited. Indeed, very few businesses accept the currency and most of it is held by a small group of people.

DOGE Price Prediction

Turning to the four-hour chart, we see that the Dogecoin price has been relatively stagnated recently. This is evidenced by the Historic volatility and the Average True Range (ATR) indicators. The ATR has dropped to the lowest level in months while the HV is also at a record low.

Still, it is worth noting that the DOGE has been relatively stable instead of dropping. This means that there are still some bulls who are interested in the coin. 

So, will the price move above $1? At this stage, this is difficult to predict but it should not be ruled-out either. The key levels to watch for now are the resistance at $0.063 and the support at $0.052.

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DOGE price chart

Dogecoin Price

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