The Dogecoin price has struggled in the past few weeks. In September, DOGE crashed by more than 30% and reached a multi-month low of $0.1935. This drop has given the coin a market capitalization of more than $28 billion and made it the 10th biggest coin in the world.
There are three main reasons why the Dogecoin price is struggling. First, the performance is in line with what other cryptocurrencies are doing. Bitcoin has crashed to about $47,000, which is lower than the weekend high of more than $48,000. Similarly, Ethereum, Cardano, and VeChain are all struggling.
Second, Dogecoin is falling because of a lack of a catalyst. Historically, Dogecoin tends to perform well when there is a catalyst going on. For example, in the past, the key driver for the coin has been tweets by Elon Musk, the richest man on earth. Recently, Musk has not tweeted about the coin. And when he tweets, the impacts of the coin has not been significant.
Third, it seems like the trend of meme assets has faded. Indeed, in the past few months, other meme assets like stocks have also underperformed. Most meme assets like AMC and Blackberry have struggled.
The hourly chart is not looking good for DOGE. As you can see, the price is hovering near the lower side of the horizontal channel. Also, the 25-day and 50-day moving averages have also formed a bearish crossover pattern. The price is also along the lower side of the channel that is shown in black while the Relative Strength Index (RSI) has formed a bearish divergence pattern.
Therefore, the coin will likely break out lower in the near term. If this happens, the next key support level to watch will be $0.200. On the flip side, a move above the key resistance at $0.2200 will invalidate this view.