Created as a joke in 2013, the crypto Dogecoin (DOGE) has seen tremendous growth in recent times. Its success is mainly due to the enthusiasm of investors and celebrities like Elon Musk. According to some cryptography expert analysts, the future of Dogecoin seems uncertain. The latter predict a potential decline, despite the rise in the flagship crypto Bitcoin.
Dogecoin crypto falling
The price of Dogecoin (DOGE) has seen a notable drop in recent days. Concretely, the price of the crypto-asset is increased from $0.22 to $0.16. This represents a drop of 27%. At the time of writing, the value of memecoin is hovering around $0.1624.
This drop is explained by several factors including the share of interest of crypto investors. But because Dogecoin is often considered an “altcoin,” its price tends to follow the trend of Bitcoin. Its price drop can therefore be explained by the drop in the price of the flagship crypto.
Added to this are the technical indicators for Dogecoin which are worrying. The Relative Strength Index (RSI) has fallen below 50, indicating an oversold situation. It means that :
- Dogecoin is potentially overvalued,
- a further decline could occur.
Crypto analysis: The uncertain outlook for Dogecoin
The future of the Dogecoin memecoin remains a source of intense debate within the crypto community. Some experts warn against a potential decline of Dogecoineven as Bitcoin (BTC) hits new highs.
According to Credibletwo scenarios could lead to a decline in Dogecoin:
- massive rejection of BTC, causing alternative cryptocurrencies to fall
- a meteoric rise in BTC that could temporarily distract investors' attention and favor liquidity from other cryptocurrencies, such as Dogecoin.
Analyst Ali Martinez highlights the potential for Dogecoin to double its value if it manages to overcome key resistance at $0.171. In this case, its next resistance would be $0.322.
The future of Dogecoin therefore remains uncertain. The crypto coin faces several challenges, but hope is not lost.
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