Over the last 7 days, the Dogecoin price has fallen more than any of the top 50 ranked cryptocurrencies. The 12% weekly decline does not bode well for DOGE.
Dogecoin has lost 7.51% in the last 24 hours and is currently trading at $0.2163.
DOGE holders will not be encouraged to see the doggy coin underperform the market by such a degree recently. Whilst Bitcoin and Ethereum have fluctuated on either side of unchanged over the period. Dogecoin is starting to break down.
Once a top-four ranked crypto, DOGE has slipped to 7th-place, behind a lethargic but stable Ripple. The latest sell-off sets Dogecoin’s market cap at just north of $28 billion and a far cry from May’s $95 billion top.
Furthermore, the fact that you have to scroll down to the 51st ranked Theta Fuel to find a worse performer over the last week is not a good sign.
The daily chart shows that DOGE remains leashed to a descending triangle pattern, acting as resistance at $0.2475.
Additionally, the 50-Day moving average at $0.3009 is now below the 100 at $0.3038, indicating the momentum has a bearish bias.
Finally, the Dogecoin price has again fallen below the $0.2230 horizontal support level.
Unfortunately for DOGE, there isn’t much in the way of positive technical indicators. The conclusion is that the price is likely heading towards the 200 DMA at $0.1702, around 22% below the current level.
Furthermore, below the downtrend at $0.2400 and lacking a positive catalyst, DOGE may exceed that downside target.
I’m prepared for the usual backlash I get following my universally negative reports on DOGE. However, the price action doesn’t lie. Dogecoin doesn’t fit the investment criteria for a large percentage of investors. And in the wake of May’s carnage, those investors are becoming more discerning as to which assets to invest in.
Of course, if the Dogecoin price clears $0.2400, it would suggest that the immediate bearish outlook is cancelled. What is doesn’t cancel is the long term negative outlook.
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