Dogecoin (DOGE) price showed minor gains on Monday as the BTC price started the week in the green. However, my outlook remains bearish as BTC failed to break above $28,000 once again. This made traders question the legitimacy of the pump during the Asian session. Most altcoins were still up slightly from their last week’s lows till press time.
DOGE is changing hands at $0.0598 after a 0.83% increase today. The biggest memecoin by market capitalization is experiencing a decrease in investor interest as their focus shifts toward Bitcoin. The increase in Bitcoin dominance in the past few weeks is a testament to that. If you intend to buy altcoin, it’s better to wait for the BTC’s market dominance to drop below 50%.
Despite a strong rebound in Bitcoin this year, Dogecoin has still lost $2.46 billion in its market cap since January 2023. This loss could be attributed to the popularity of newly launched memecoins like PEPE, which attracted a lot of capital.
Many investors took their capital out of the older memecoins like DOGE and SHIB to invest in the new coins in search of short-term gains. The falling market capitalizations of the top memecoins of 2021’s bull run back this thesis.
Dogecoin price has also shrugged off the mainstream adoption of the digital asset. As per recent reports, DOGE is among the few cryptocurrencies that are now accepted for tickets to Taylor Swift’s concert movie.
For long and short term outlooks, I am going to analyze the DOGE price chart on different timeframes. While the coin is in an intense downtrend on a higher timeframe, the price action appears to be sideways on a shorter time horizon. For the past two months, the price of the popular dogcoin has been trading within the $0.06-0.068 range.
Currently, the coin is attempting to reclaim the range lows, but the Dogecoin price prediction remains bearish. I would like to see a breakout from the downward trendline, which is shown in black, before jumping into any long term position.
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This post was last modified on Oct 16, 2023, 13:06 BST 13:06