Despite today’s trading session showing Tamadoge price gaining in the markets and extending yesterday’s bullish trend, the momentum and volatility that propelled the crypto to popularity look to have disappeared. It has also been trading in an aggressive bearish trend, dropping by 13 per cent last week and over 15 per cent the previous week.
Part of the reason we have started to see Tamadoge suffer in the markets is that it is a memecoin. As part of the doge-themed cryptocurrencies, Tamadoge has been faced with similar challenges other memecoins, such as Dogecoin, Shiba Inu and Dogelon, are facing, which is the lack of enthusiasm from investors, as was the case last year. Therefore, these market factors have dragged the entire memecoin economy down, partly contributing to the current bearish trend of the Tamadoge price.
The collapse of the FTX crypto exchange can also be partly blamed for the current underperformance of Tamadoge in the markets. Following the collapse, most major coins, including Bitcoin, which has seen fallen to as low as below $16,000, have entered aggressive bearish markets. Due to Tamadoge’s significant correlation with the industry, the drop has resulted in its prices also getting dragged down in the past two weeks.
As shown above, the current bear market of Tamadoge has been majorly due to fundamental factors such as the collapse of FTX and the declining memecoin economy. Investors have also become cautious about investing in risky projects such as Tamadoge.
This is reflected on the daily chart below, where we have seen an aggressive bearish trend of the past few weeks coming to an end and instead being replaced by low volatility, low momentum, bearish push.
Therefore, in the next few trading sessions, I expect the Tamadoge price to continue trading in a sideways market. I also expect the price to trade in narrow price ranges between $0.020 and $0.025. Trade outside of these ranges will invalidate my sideways price analysis.
This post was last modified on Nov 23, 2022, 11:10 GMT 11:10