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Created as a joke in 2013, the Dogecoin (DOGE) crypto has seen tremendous growth recently. Its success is mainly due to the enthusiasm of investors and celebrities like Elon Musk. According to some crypto experts, the future of Dogecoin seems uncertain. These predict a potential decline, despite the rise of the flagship crypto Bitcoin.
Falling Dogecoin Cryptocurrency
The price of dogecoin (DOGE) has seen a significant drop in recent days. Specifically, the price of cryptoassets is increased from $0.22 to $0.16. This represents a decrease of 27%. At the time of writing, the value of memecoin is around $0.1624.
This decline is explained by several factors, including the share of interest from crypto investors. But since Dogecoin is often considered an “altcoin”, its price tends to follow the trend of Bitcoin. So its price drop can be explained by the price drop of the flagship cryptocurrency.
Added to this are the technical indicators for Dogecoin that are worrying. The Relative Strength Index (RSI) has fallen below 50, indicating oversold situation. It means that :
- Dogecoin is potentially overvalued,
- further decline may occur.
Cryptocurrency Analysis: Uncertain Outlook for Dogecoin
The future of the Dogecoin memecoin remains a source of intense debate in the crypto community. Some experts warn against it potential decline of dogecoineven as bitcoin (BTC) hits new highs.
According to Credible, two scenarios could lead to a decline in dogecoin:
- massive rejection of BTC causing alternative cryptocurrencies to crash
- a meteoric rise in BTC that could temporarily distract investors and favor liquidity from other cryptocurrencies such as Dogecoin.
Analyst Ali Martinez highlights Dogecoin’s potential to double its value if it succeeds break the key resistance at $0.171. In this case, its next resistance would be $0.322.
Therefore, the future of dogecoin remains uncertain. Cryptocoins are facing several challenges, but hope is not lost.
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My name is Ariela and I am 31 years old. I have been working in the field of web development for 7 years. I only discovered trading and cryptocurrencies a few years ago. But it’s the universe that interests me a lot. And the topics covered within the platform allow me to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!)
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.