The original memecoin of the crypto industry has recently experienced a strong bear presence in the markets. According to crypto market tracker Coingecko, Dogecoin (DOGE) is flashing red at all time frames, with the biggest loss observed at the bi-weekly time frame which shows a nearly 6% decline.
The drop has been caused by recent market movements, all of which has an effect on DOGE’s price. This week saw Bitcoin and Ethereum face losses, with BTC rejected at $25k and ETH $1.7k, respectively.
However, other metrics are showing bullishness. According to the Phoenix Group, Dogecoin is the most socially active among its memecoin peers.
TOP #MEME TOKENS BY SOCIAL ACTIVITY$DOGE $SHIB $QUACK $FLOKI #BABYDOGE $CATE $TSUKA $VOLT #POLYDOGE $VINU pic.twitter.com/Le1mvUMfWF
— PHOENIX 🇺🇦 (@pnxgrp) February 19, 2023
Elon’s Recent Interactions With Dogecoin
Elon Musk and Dogecoin have an extensive unofficial relationship which affects both price and investor sentiment. Last week, Musk posted multiple pictures of a Shiba inu in the company’s headquarters with mock paperwork.
“The new CEO of Twitter is amazing!” he says in the first tweet, referencing the billionaire’s recent decision to step down as the company’s CEO. Current news reports say that the tech leader is planning to step down by the end of 2023, citing that he’s still looking for a worthy successor for the throne.
High time I confessed I let the Doge out pic.twitter.com/TAi4p1khAd
— Elon Musk (@elonmusk) February 22, 2023
While he’s still big boss of the social media platform, Musk shared a tweet which threw a bone to the Doge community.
“High time I confessed I let the Doge out,” Musk said, sharing a picture with a caption that read: “It was me, I let the dogs out”.
This was met by the crypto community with praise. Major exchanges like Huobi and OKX joined the fray, posting pictures and GIFs of Shiba inus to show support for the original memecoin.
Since then, however, the token has not shown promise, dropping consistently since it hit $0.0921 resistance last week.
DOGE @ $0.0842, Shows Promise Long-Term
Analysts have identified that the token is at a narrow trading range in the long-term prospect for the token. At the time of writing, DOGE is trading between $0.0797 and $0.0921, showing a strong struggle between bulls and bears.
Forming Symmetrical Triangle In 8h Timeframe Incase Of Breakout Expecting 50 -55% Bullish Move🔥🔥🔥#Crypto #Doge #Dogecoin #Dogeusdt pic.twitter.com/VnowAtGbhR
— World Of Charts (@WorldOfCharts1) February 23, 2023
It is also a sign that the token is either gearing up for a big move downwards or upwards, bringing pain or gains for investors.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
DOGE is also correlated with major cryptos like Bitcoin and Ethereum to some degree which may provide bulls some support. However, if the correlation grows and they continue to face pain, DOGE will inevitably get pulled downwards as a result.
Investors and traders should brace in the coming days as the token may experience volatility in the medium to long term.
-Featured image from Yahoo Finance