Dogecoin Price Prediction: Why Prices are Falling?

Summary:

The last week has seen Dogecoin prices rallying by over 15 per cent, then dropping with the same margin the next day.

The last week has seen Dogecoin prices rallying by over 15 per cent, then dropping with the same margin, and then trading in a sideways market. Much of this movement has been due to the latest headlines showing Dogecoin could be used to pay for the Twitter Blue subscription.

Elon Musk, the CEO of Tesla and the largest Twitter shareholder, shared that users would be able to use Dogecoin on his Twitter account. During the announcement on his Twitter feed, reports of Elon Musk becoming a member of the Twitter board had already started circulating. The announcement gave Dogecoin investors hopes that it could be used on the platform.

However, days later, it was revealed that Elon Musk would not be joining the board of Twitter. The announcement may have spooked investors, causing a semi crash in the prices of Dogecoin. In addition, the Twitter Blue subscription service was launched last year in June and allows Twitter users to pay for exclusive content and features. Such features include “Undo Tweet” and the ability to customize Twitter app icons.

Dogecoin has also had mixed market signals in the last 24 hours, with its trading volume increasing by over 89 per cent. However, even with the sharp increase in the trading volume, the past 24 hours have also seen its price decrease by 2.8 per cent.

Dogecoin Price Analysis

The past five days have seen Dogecoin prices trading sideways. Today, Dogecoin has already lost over 2.5 per cent of its value after opening the markets at $0.1479. The recent drop in price also comes amidst a recent surge that saw Dogecoin gaining over 15 per cent of its value on April 5, 2022. Unfortunately, this was followed by a drop of 17 per cent the next day.

Looking at the daily chart below, I expect the prices to continue with today’s drop. I also expect the Dogecoin price to trade below the $0.1327 support level. There is also a high likelihood that the prices may hit the next long-term support level of $0.11 in the coming days or weeks.