In 2019, Dogecoin (DOGE) is one of the most heavily hit cryptocurrencies. Investors seem to be avoiding meme coins due to increased risk-off sentiment.

Despite DOGE’s recent consolidation, the upside potential is still quite limited. Here are some key takeaways:

  • DOGE is currently trading at $0.0055, which is 90% below the all-time high of $0.058 set in early May.
  • Technical and fundamental analysis both suggest that DOGE is currently bearish.
  • DOGE’s market capitalization has shrunk from $8 billion to around $600 million during the sell-off.
  • Without any positive news, the price will struggle to recover its $0.17 support.
  • Further downside is anticipated in the near term.
Data Source: Tradingview

What does the future portend for DogeCoin?

$0.17 was one of DOGE’s most important supports less than a month ago. And it is now being tested for the first time in several years.

Even though the currency had shown more volatility in 2022, it succeeded in defending against the bears at this price. However, $0.17 was lost, and ever since then, DOGE has struggled to gain enough interest to reclaim it.

The DOGE market is currently in a consolidation phase with very little trading activity. This is after the recent sell-off that has seen the price of DOGE tumble from $0.50 to its current price of $0.04.

The market capitalization of DOGE has also shrunk from $8 billion to around $600 million during this period.

Presently, the coin will have to rise by at least 100% to meet that mark. We don’t think this will happen any time soon. Regardless of their nature, fundamental and technical analysis indicate that the meme coin is in more trouble.

DOGE is facing a lot of selling pressure near $0.1, even though it appears to have bottomed in mid-March.

In terms of technical analysis, DOGE is still severely pressured below $0.1, a significant overhead resistance line. Also, RSI, an important momentum indicator, indicates that demand for the coin has slowed down.

This means that DOGE will likely continue to move sideways or downwards shortly. Similarly, from a fundamental point of view, DOGE’s use cases remain limited.

While it was created as a joke coin, DOGE has managed to find a few use cases. However, these are not enough to sustain its current price.

From a fundamental standpoint, worries about decreased economic growth and inflation may cause investors to flee from meme coins. These factors will drive DOGE close to $0.04 in the next few months.

It’s important to keep in mind that DOGE is a highly volatile coin. So, even though it may not return to $0.17 in the near term, it could still make big gains in the future.

For now, DOGE investors should be patient and wait for the market to stabilize before making any decisions.

Should you buy or trade DOGE?

The best way to profit from this situation is to short the coin and wait for it to bottom at $0.04. But because of its high volatility, ensure you have enough margin available to handle a price jump up to at least $0.09.

Investors who are bullish on DOGE can consider buying the coin at $0.04 and holding it for the long term. It’s important to have a strict stop-loss in place as DOGE could easily fall back to this level if market conditions deteriorate.

With no positive news on the horizon, it is unlikely that DOGE will be able to stage a recovery anytime soon. Further downside is expected in the near term as the bearish momentum continues to build up.

In conclusion, it is unlikely that DOGE will return to $0.17 anytime soon. The coin is still under a lot of pressure and its use cases are limited.

Avatar
James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.