Dogecoin’s value decreases by more than 10% due to political turmoil and investors selling off
Over the past week, Dogecoin has experienced a significant drop of more than 10%, leading to a price of $0.179. This decline seems to be connected to the heightened uncertainty surrounding figures like Elon Musk and Donald Trump, impacting investor confidence in the cryptocurrency market. Despite this setback, Dogecoin maintains its position as the eighth-largest cryptocurrency with a market capitalization of $26.88 billion, holding a dominance of 0.8299%.
A closer technical analysis reveals the widening Bollinger Bands on the 4-hour chart, signaling increased volatility. Initially touching the lower band around $0.17, the price has shown a slight recovery towards the midline. The surge in trading volume to $1.63 billion suggests a widespread sell-off, with the Relative Strength Index (RSI) entering an oversold zone at 39.75 before indicating signs of a potential reversal.
Looking ahead, if the bullish trend persists, Dogecoin could test the resistance level at $0.183, aiming for targets at $0.200 and $0.217. However, failure to break through this resistance could lead to a price decline towards the critical support level of $0.165 in the upcoming weeks. The market’s reaction to these levels will play a crucial role in determining Dogecoin’s future trajectory.
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In conclusion, the recent challenges faced by Dogecoin underscore the inherent volatility of the cryptocurrency market. External factors such as political drama and investor sentiment can have a profound impact on price movements, highlighting the need for participants to stay vigilant and informed. By closely monitoring technical indicators and market trends, investors can position themselves strategically in response to evolving conditions in the digital currency space.
