Dogecoin (DOGE) has been in a steady downtrend since hitting highs of $0.73 in May 2021. The meme-inspired cryptocurrency is currently trading below the key support level of $0.06, which has now turned into resistance.
According to prominent crypto analyst Altcoin Sherpa, Dogecoin is not looking positive technically or fundamentally at the moment: “Not seeing any movement on this one, it’s at a key 0.057 area but I don’t see any reason to buy this one right now. Been a while since I looked at this chart, ugly stuff.”
On-chain data from Santiment shows that Dogecoin has hit 2-month lows in terms of social volume, dropping to levels not seen since August 2023. This indicates fading interest and chatter around DOGE, which is generally a bearish sign.
Source: Santiment – Start using it today
Additionally, the SEC is pursuing a case against Elon Musk, who has been a major Dogecoin bull and advocate. This legal action could weigh negatively on DOGE if Musk disengages from actively promoting the cryptocurrency.
Technically, DOGE recently broke down from a descending triangle pattern, opening up downside risk towards the next support around $0.053. Momentum is decisively bearish, with the MACD line below the signal line and RSI below 45.
Given the confluence of negative technicals, on-chain data, and potential legal overhangs, traders may want to avoid DOGE for now or even consider short positions. The path of least resistance appears to be to the downside until buyer conviction returns to overwhelm the selling pressure.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy thetrades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com