- Summary:
- Why has the Dogecoin price underperformed its peers? We explain some of the reasons including the declining volume in the coin
The Dogecoin price has been left behind in the remarkable cryptocurrencies rally. DOGE is trading at $0.314, which has declined by about 7.17% in the past 7 days. It has also dropped by more than 2.8% in the past 24 hours. Other key altcoins like Cardano and Binance Coin have risen by more than 16% and 37% in the past 7 days.
Why Dogecoin has lagged
Cryptocurrency prices have followed the price of Bitcoin higher in the past few days. Indeed, the total market capitalization of all coins tracked by CoinMarketCap shows that their total market capitalization has jumped to more than $2.2 trillion. This recovery provides further evidence that cryptocurrency prices have a close correlation with Bitcoin.
Still, Dogecoin price has lagged because of several reasons. First, the total volume of DOGE traded every day has been falling. On Monday, the volume was more than $2.8 billion. While this was higher than in the previous day, it was substantially lower than this month’s high of more than $8 billion. Similarly, the search volume of Dogecoin and DOGE have all declined.
Second, in my view, the coin has lagged because of the muted activity of Elon Musk and other boosters. Historically, the coin’s price tends to do well after a guy like Elon Musk or Mark Cuban talks about it.
Finally, I believe that the coin has underperformed because of the overall rotation as investors move to other high-yieldng coins. The most logical one is Cardano, whose price has more than doubled recently. Other red-hot coins recently have been Enjin Coin, Solana, and Terra.
Dogecoin price prediction
The four-hour chart shows that the DOGE price has been under pressure. Indeed, it has declined by more than 10% from its highest point this month.
The coin’s price remains along the 25-period and 50-period exponential moving averages. The MACD has moved below the neutral level while the Relative Strength Index (RSI) has formed a bearish divergence pattern. Therefore, there is a possibility that the coin will keep falling as bears target the key support at $0.30. In the longer-term, however, it will likely break out higher and move above the August high at $0.3535. Read our guide about how to buy Dogecoin.
