The price of Dogecoin (DOGE), also known as Elon Musk’s favorite cryptocurrency, is currently moving in the opposite direction of the market, focusing on a downward trend. DOGE, which reflects the opposite trend in the cryptocurrency sector, is definitely drawing attention and reactions. So why is the DOGE price falling?
On July 18, the DOGE price experienced a decrease of approximately 1.75% and performed much worse compared to the rest of the crypto market. In fact, the massive increase caused by the lawsuit faced by XRP initially pushed the sector one step up, followed by a correction. However, DOGE surprised investors by experiencing an even more severe decline than the general correction.
Before the significant decline in DOGE, Elon Musk also tweeted about it, drawing attention. Musk made a DOGE-focused reference with his response on July 17.
In response to the unrelated question of “Do you prefer cats or dogs?”, Musk made a clear reference to “DOGEs”. Although this situation provided a short-lived increase in the price, DOGE had to turn back downwards.
Looking at the technical chart of DOGE, it can be seen that it returned to the significant support of the 50-day EMA as of July 18. DOGE, which found support at $0.068, may drop to $0.066 and then $0.055 if it goes below. However, if the DOGE price starts to rise again with real volume after a minor pullback, the $0.075 level would be a suitable target.
In the short term, DOGE may have experienced a decline due to a loss of popularity. Another reason seems to be the role-playing of meme tokens like PEPE. As the interest in meme tokens increases, DOGE is no longer the only meme token in the market and fails to take a sufficient share of this trend. Shiba Inu, PEPE, FLOKI, and many other meme tokens have a significant impact and generally reduce DOGE’s share. However, DOGE continues to maintain its bullish formation in the long run.