In the last week, Dogecoin (DOGE) fell 24% to $0.31, one of the largest declines among prominent cryptocurrencies.
Dogecoin’s slide mirrors the overall market correction, with Bitcoin (BTC) down 12% from around $108,000. On Friday, DOGE/USD hit a one-month low of $0.267 before recovering to $0.31. Despite the decline, Dogecoin’s price has been 227% higher in the last year.
7-day Dogecoin Price Chart. | Source: CoinMarketCap
The memecoin sector has also suffered heavily, with Dogwifhat (WIF) down 32% and Floki (FLOKI) and Pepe (PEPE) each down 27%. Shiba Inu (SHIB) followed Dogecoin’s 23% plunge, implying a sector-wide correction.
DOGE Technical Outlook
According to technical analysis, Dogecoin trades within the Gaussian Channel, an important parameter for determining price support and resistance. Cryptocurrency expert Trader Tardigrade reported that DOGE has continuously traded above the Gaussian Channel’s mid-band since October.
However, $0.355 represents a significant resistance level, and any move over the channel’s upper band could spark a bullish rebound. DOGE’s trading activity demonstrates that purchasing interest is very low, as indicated by its sharp rebound from $0.267 to $0.31.
However, market uncertainty and whale movements continue to impact its price negatively.
Factors Affecting Dogecoin Price
Other factors influencing Dogecoin price positively include Elon Musk’s continuous backing, as his companies, Tesla and SpaceX, accept DOGE for payments for their services and products. In addition, Musk’s role in the forthcoming Department of Government Efficiency (D.O.G.E.) will likely increase DOGE adoption.
Nevertheless, risk considerations include considerable sell activities by whales, which will result in a decline in its price and memecoins’ intrinsic volatility. Also, the broader market sentiment and potential regulatory developments will significantly influence the Dogecoin price.
Meanwhile, Billy Markus, a co-developer of Dogecoin, recently sparked debate with a social media post in which he sarcastically described himself as “pre-rich.” Markus’ remark sparked reactions within the DOGE community since he has often informed the public that he sold most of his shares in 2015.