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Dogecoin (DOGE) has been going through some pretty hard times lately. Dogecoin’s daily chart was overly bearish, trading volumes were low and negative investor sentiment was on the rise.
In the face of the recent downturn in Dogecoin’s fortunes, many investors are wondering if it’s time to cut their losses and move on.
The bearish trend on the daily chart of Dogecoin has caused uncertainty about the future of this once popular cryptocurrency.
As the popular meme coin struggles to regain ground, investors are left wondering what factors contributed to its downfall.
Uncertainty mounts as Dogecoin faces price crash
According to TradingView, DOGE has experienced a bearish breakout from its previous price consolidation range since May 8th. This came after DOGE hit a price ceiling around $0.1000 on April 18, followed by a price reset.
The current DOGE price of $0.0731 on CoinGecko suggests a mixed bag of a slight 1.07% rally in the last 24 hours and a 6.8% drop in the last seven days.
However, the general trend indicates a depreciation of more than 20% since the second half of April.
Investors are now wondering if the price drop is temporary or a sign of new troubles for the meme-inspired cryptocurrency.
DOGE has always been a volatile investment option, with its price going through several cycles of ups and downs.
However, the recent drop in the price of the coin is particularly worrisome as it appears to be part of a larger bearish trend in the cryptocurrency market.
About low trading volumes and sudden price fluctuations
The recent bearish breakout and drop in the price of Dogecoin has left traders wondering what lies ahead. As the cryptocurrency market is in constant flux, it is important to keep a close eye on the factors that could influence the movement of the DOGE price in the coming days and weeks.
One of the key factors to pay attention to is trading volume. Low trading volumes can make DOGE vulnerable to sudden price fluctuations that can cause either a sharp rise in prices or a sharp fall.
In addition, negative sentiment towards DOGE could exacerbate the current bearish trend as more traders become wary of investing in a cryptocurrency that seems to be losing momentum.
The total market capitalization of DOGE is slightly above the $10 billion level. Chart: TradingView.com
Another factor to consider is the wider crypto market. DOGE performance is often closely related to the overall market sentiment, so any major market changes can have a significant impact on the price movement of a coin.
In particular, news or events related to major cryptocurrencies such as Bitcoin and Ethereum may affect DOGE price trends.
While there is always a chance that DOGE will recover, sellers could benefit more if low trading volumes and bearish sentiment continue in the coming days and weeks.
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