Dogecoin (DOGE) Price Close to Its Support; What’s Next?
Dogecoin has had a difficult time this year because of macro factors in the world economy. It has crashed more than 60% in the last year and lost significant value. Experts believe the fall will continue throughout this year and next year because of uncertainty in the macroeconomy, the fear of inflation, and the recession in different parts of the world.
DOGE had provided huge returns last year because Elon Musk backed it as ‘People’s Coin.’ Due to high media coverage, many retail investors intensified the rally. However, the latest CPA data in the USA makes the situation worse because now investors expect a FED rate hike of one basis point, even after the increment of 0.75 basis points.
In the USA, inflation has reached its highest point in the last four decades. As a result, the bank will hike interest rates, and Dogecoin will face another outflow because investors want a safer asset in this time of uncertainty. There are no safer assets than government bonds and fixed deposits.
The falling market demand for meme coins is another factor in DOGE’s downtrend. The volumes have also reduced this year. Overall, it is not an ideal time to invest in meme coins for the long term. What should you do with your DOGE holdings? Read our Dogecoin forecast to find the answer.
At the time of writing this post, DOGE was trading around $0.059. In the short-term timeframe, Dogecoin has been consolidating within a range of $0.056 and $0.065. Though the candlesticks are forming in the lower half of the Bollinger Bands and BB lacks volatility with RSI over 40, we think it is an ideal time for short-term investment.
The long-term chart has been in a downtrend, but it has taken support at around $0.05; we do not think it is an ideal coin for long-term investment. Meme coins are very volatile and might not be great as an asset. They are mainly influenced by community news.
If you are active on social media, you can invest for the short term, but we do not recommend Dogecoin for long-term holding, especially in 2022. If you like meme coins, you can add them to your watchlist to get short-term benefits.
