Dogecoin (DOGE) appears to be chasing its tail these days, unsure of its next direction. In September, DOGE rallied as high as 117 satoshi, then slumped on its way to shedding half its value. It has since shot back above 70, but then stalled and now appears stuck in decline.
DOGE is currently trading at 61 satoshi ($0.000226), and has touched 60 at least once during the past 24h. Volume continues to be strong, but not like it used to be, with $322,000 worth traded in the past 24h.
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The 60 mark is also DOGE’s 200-day moving average, which is still feeling the effects of a difficult spring and summer, and remains in gradual decline. Should DOGE cross it, it would mark the sixth time in two months.
To be fair, part of DOGE’s decline can be attributed to a rising bitcoin value. BTC is up by 15% during the past 5 days, which more than explains DOGE’s 10% drop (in bitcoin terms) during the same period. However, it does not justify the first half of DOGE’s fall, from above 70 to the mid-60’s, prior to that. Nor does it excuse DOGE for not having joined in the recent crypto rally. A net neutral position now reflects possible underlying weakness in the near-term.
Should DOGE fall back below 50 satoshi, a decline into the 30’s is a real possibility. A long-term view of DOGE’s chart shows that DOGE’s sharp September rally was not accompanied by adequate subsequent stability. There is no short-term support in the 40’s, so its price would unwind in parallel fashion to the ascent.