Dogecoin (DOGE) price experienced a sharp sell-off last week as the BTC price tanked below $25,000. While many new meme coins surged last month, the DOGE price has failed to rally. The latest analysis suggests that the biggest memecoin might experience a bullish reversal soon.
DOGE price fell to $0.053 last week, its lowest level since June 2022. The price pierced through very strong support but failed to close below and got a strong bounce. On Thursday, Dogecoin turned red once again and was trading 0.26% lower, as the BTC price was battling with the $25,500 level.
The meme coin narrative became big once again in 2023 as the PEPE hype took over the whole internet. A lot of new meme coins have popped up lately due to the increased investor interest in the risky asset class. PEPE coin was launched in April and went on o become the 3rd biggest meme coin by market cap within just two weeks of its launch.
Dogecoin price has failed to react to the ongoing meme coin season and has remained sideways. Nevertheless, DOGE still remains the biggest memecoin with a market cap of almost 30 times more than the PEPE coin. As per Coinmarketcap, Dogecoin has a market capitalization of $8.6 billion.
Technical analysis of the DOGE price chart shows that it is forming a descending triangle pattern with the bottom close to the $0.05 level. The bottom of this range acts as a strong demand zone. A closer look reveals that the Bulls stepped in time to avoid a daily closure below this support last week. This kept the bullish market structure of the coin still intact.
Dogecoin price prediction is not looking very bearish at the moment as the price is still holding its $0.05 support level. The bullish divergence on the Money Flow Index (MFI) is pointing towards a strong bounce very soon. However, this will depend on the BTC price action in the coming weeks.
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This post was last modified on Jun 16, 2023, 14:02 BST 14:02