Dogecoin’s price has sharply declined, making it the worst-performing coin among the top 10 cryptocurrencies. This article explores the reasons behind the drop and its implications for investors.
Points
- Dogecoin price falls below $0.10, trading at $0.08.
- Registers highest price decrease among top 10 cryptocurrencies.
- Massive liquidations contribute to the decline.
- Technical indicators suggest bearish momentum.
- Potential for a rebound if buying pressure returns.
Dogecoin （DOGE） has experienced a steep decline, falling below $0.10 and currently trading at $0.08. This drop makes DOGE the worst-performing cryptocurrency among the top 10 by market capitalization, surpassing the declines of Binance Coin （BNB）, Solana （SOL）, and Ethereum （ETH）.
Steep Decline and Liquidations
Data shows that the crypto market has faced a rough 24 hours, but the situation has been particularly dire for Dogecoin. The coin has fallen by 24.89%, a sharper drop than its peers. A whale moved 117.52 million DOGE, valued at $11 million, to Robinhood, which caused further panic as such movements often precede sell-offs.
The liquidation value for Dogecoin reached its highest since mid-June, totaling $14.74 million in the last 24 hours. Long positions accounted for $13.08 million of these liquidations, indicating that traders betting on a price increase suffered significant losses.
Technical Indicators Suggest Bearish Momentum
Technical analysis reveals a bearish outlook for Dogecoin. The Moving Average Convergence Divergence （MACD） indicator, which uses two moving averages to determine price trends, is in negative territory. This indicates bearish momentum, with selling pressure dominating the market.
The Relative Strength Index （RSI）, which measures momentum, is currently in oversold territory. An RSI reading below 30.00 suggests that Dogecoin is oversold, potentially setting the stage for a rebound if buying pressure returns.
DOGE Price Prediction: Coin Oversold, Rebound Next?
DOGE’s price peaked at $0.14 about two weeks ago. From a technical perspective, the current market structure is the opposite of what happened during that period. If buying pressure returns, DOGE’s price could rebound to $0.10. However, if selling pressure continues, DOGE could slip below $0.08.
Conclusion
Dogecoin’s sharp decline highlights its volatility and the challenges faced by investors. While technical indicators suggest a potential rebound if buying pressure returns, the market remains bearish. Investors should monitor key support and resistance levels and market sentiment to navigate this volatile period.