The price of Dogecoin is sinking after the Tesla-induced boost, and investors are booking their profit. In the last year, the coin boosted massively. In the last 24 hours, the Dogecoin market price fell by around 4%.
While the overall crypto market looks stable, the profit booking of DOGE investors is the center of all crypto lovers. The coin gained popularity after Tesla’s CEO Elon Musk announced the company would accept DOGE as payment for some of their merchandise.
Elon Musk backed Dogecoin during the last couple of years, and the story continues even in 2022. Elon Musk thinks it is the ‘common citizen’s coin.’ He directly expressed his support through Twitter. His comment frequently boosts the DOGE price; the coin was up significantly even after the recent pullback.
It started as a clone of Bitcoin and has become the 11th largest cryptocurrency. This canine-faced meme coin provides impressive returns and currently has a market cap of $22.5 billion.
Most of the cryptocurrencies like Solana, Ethereum, and Cardano have underlying blockchain service networks to analyze the performance, but Dogecoin depends on speculations and news.
That is why it might be a risky investment, as it depends more on social media than on performance.
Dogecoin Price Analysis:
While writing this analysis, the price of Dogecoin is around $0.1698, which is almost 4% down from the previous day. $0.16 is the strong support level of this coin; if it breaks, it may dip down to $0.1445.
On the above side, $0.189 is the strong resistance level because it has bounced back from this area three times. After reaching ATH of $0.7376 in May last year, it has been in the downtrend. On the daily chart, RSI is stable at 50, MACD is still bullish. Moreover, the last two days’ candlesticks are red but formed in the upper half of the Bollinger Band.
Overall, it can be called a falling knife; a retail investor should be aware of this coin. Though all the technical tools are still bullish, traders can be victims of the situation because most of them are booking their large profits.
After the announcement, the volume has increased, but now candlesticks are in the downtrend. It is challenging to speculate anything now. Any news about this coin can break the resistance level within a couple of hours. This is the power of the meme coin. However, investors should analyze their risk before investing in meme coins. Click here if you wish to know more about Dogecoin future price. For traders who are very active in social media, especially Twitter, it may be their favorite coin.