Dogecoin Struggles Below Key Support as Interest Falters
Dogecoin price currently sits below key support levels as trading data shows declining demand. Over the past few months, investors have shown less interest in this popular meme cryptocurrency.
Dogecoin Consolidation Phase
In recent days, Dogecoin has remained in a consolidation phase, meaning it's been stuck in a tight price range without significant upward or downward movement. As of now, DOGE is trading at $0.1242. This is more than 42% down from its highest point this year, placing it squarely in a deep bear market.
Meme Coins Outperforming
Dogecoin’s poor performance contrasts sharply with other meme cryptocurrencies:
- MOTHER Iggy, associated with Iggy Azelia, rose by 18% on Wednesday and has bounced back by over 75% from its lowest point this week.
- Hoppy, a newer meme coin, soared by more than 3,600% from its lowest point in May.
- Doland Tremp jumped by 90% in the past few days.
Focus Shifts to Newer Meme Coins
It's likely that most day traders are now focusing on newer meme coins with stronger performances since 2023. For instance, tokens like Bonk, Pepe, and Dogwifhat (WIF) have outperformed established cryptocurrencies like Bitcoin, Ethereum, and Solana during this period.
Declining Demand and Volume
Trading data reveals that demand for Dogecoin has been weak. Its 24-hour trading volume often stays below $1 billion, which is smaller compared to other meme coins like Pepe, whose 24-hour volume stood at over $1 billion.
Futures Market Woes
Similar trends are seen in the futures market. Dogecoin’s open interest has been trending downwards. It peaked at over $1.9 billion in March but has since dropped to $578 million.
Technical Analysis: Bearish Signs
From a technical standpoint, Dogecoin’s price is below the 200-day and 50-day Exponential Moving Averages (EMA), which is a common bearish sign. This situation could worsen if these two moving averages cross each other to form a death cross, one of the most bearish indicators.
Currently, Dogecoin is sitting at an essential support level. This level is significant because it was the lowest swing on May 1st and the neckline of a double-top pattern. A further drop could push the coin to the psychological level of $0.10.
In summary, Dogecoin is struggling due to waning interest and lower trading volumes. In addition, with more day traders shifting their focus to newer meme coins, the outlook for Dogecoin remains challenging.
