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Dogecoin Rally Fades as Price Drops Over 10% Amid Bitcoin Slump

Published 2024-11-01, 07:13 a/m
© Reuters.  Dogecoin Rally Fades as Price Drops Over 10% Amid Bitcoin Slump
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The News Crypto -

  • Dogecoin (DOGE) dropped over 10% in the last 24 hours, bringing the price down to around $0.1606.
  • The decline follows a broader market dip led by Bitcoin, which fell back to $69K, causing the overall crypto market to drop by 3.2%.

Dogecoin (DOGE) enthusiasts saw a brief glimmer of hope as the popular memecoin surged to six-month highs, hitting close to $0.1792 on October 29th. This peak, similar to levels last seen in April, was driven by a single social media post by tech billionaire Elon Musk. Featuring himself with a DOGE avatar, Musk’s post on X (formerly Twitter) sent the token soaring, with buyers rushing in on the excitement. But just as quickly as the rally began, it stumbled, with Dogecoin now experiencing a sharp decline of over 10% in the past 24 hours.

At the time of writing, Dogecoin priced at $0.1606, with a market cap of $23.54 billion. Daily trading volume remains high, up about 24% to $2.4 billion, indicating active trading. The drop in the DOGE comes as the global crypto market followed Bitcoin’s lead, which dipped back to $69K zone, pushing the total market down by 3.2% over the same period.

Dogecoin Hints at Continued Selling Pressure

The technical indicators suggest DOGE may continue facing challenges in the near term.

According to the 4-hour price chart, Dogecoin’s MACD (Moving Average Convergence Divergence) has dipped below its signal line, pointing to a bearish sentiment. Additionally, Dogecoin’s price remains below both the basis and upper line of the Bollinger Bands, hinting at potential price weakness. Further, the 9-day EMA (Exponential Moving Average) signals a bearish trend, indicating that selling pressure could push DOGE to test its next support level near $0.150.

Despite this pullback, a recovery remains possible if buyers re-enter the market and push the price above the 9-day EMA. If this happens, DOGE’s next resistance level to watch would be around $0.173, aligning with its recent high. For now, however, the memecoin remains under pressure.

This content was originally published on The News Crypto

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