The king of meme coins, Dogecoin, has been experiencing a steep price drop for many days. During this dark period, it lost more than half of its value. While the crypto ecosystem is in full swing, questions are flying about its future.
Why is Dogecoin (DOGE) falling?
There are several reasons behind the apparent downfall of Dogecoin. First, the increased volatility of the crypto market. Indeed, the main digital assets are going through a phase that is far from happy for investors. The prices of bitcoin (BTC) and Ethereum (ETH) have seen strong fluctuations in recent months. This volatility is prompting some investors to sell their positions, contributing to the DOGE’s fall.
On the other hand, the same corner was hit by a technical outage on August 15, leading to a loss of investor confidence. In addition, the sale of bitcoin (BTC) has increased in recent weeks. This sell-off caused the prices of most cryptos to drop.
In addition to these elements, there are also concerns about the future of Dogecoin. Indeed, these are the work of Elon Musk, the CEO of Tesla and SpaceX, who was an ardent defender of DOGE. The Twitter boss recently said he wasn’t convinced it could be used for payments on Twitter. Icing on the cake, he also claimed that he doesn’t want a blockchain-based social media platform.
Will the price of DOGE go up?
It is difficult to say whether the price Dogecoin will go up. Technical analysis suggests that the price of the crypto may be holding above the $0.060 support level. If the price can stay above this level, it could rally back to $0.150, which is a 140% increase from the current price.
However, if DOGE price drops below the $0.060 support level, the scenario will be different. In fact, it could drop to $0.036, which is a 50% drop from the current price.
In sum, investors considering buying Dogecoin (DOGE) should be aware of the risks. The price of crypto is currently very volatile and there are concerns about the future of this same coin.
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