Dogecoin Price Analysis: Why is DOGE Price Falling Today and What’s Next

Key Takeaways

• The Doge price closed the previous day’s trade at $0.067 with a market capitalisation of $9.06 billion and a circulating supply of 132.67 billion DOGE
• The asset has experienced a massive drop in recent times that has dragged the price away from the $0.1 target to some extent
• Multiple reasons have fueled the DOGE price plunge, shift pf market sentiments remains the main focus

Why is Dogecoin Price Falling Today?

Tesla’s Massive Bitcoin Sell-off

Tesla’s Q2 balance sheet just made huge headlines as the organization that held more than 40,000 BTC, liquidated 75% of its holdings then. With the new FUD in the space, the Bitcoin price tumbled down, dragging the entire crypto space by nearly 10%. Dogecoin price also was impacted negatively while the clarification by Mr Musk of not liquidating any DOGE, could not save the price plunge.

Read more: Tesla Sells 75% of Bitcoin Holdings

Bear Market Trend

Since the beginning of 2022, the crypto space appears to be under bearish influence with short-term bounces every now and then. As the bears are restricting the BTC price below $24,000, the altcoins tend to act accordingly. Hence DOGE price also maintained its upper cap of around $0.08. 

Increased Volatility Rate

The DOGE price was pretty stagnant for a pretty long time as the volatility rate was notably low. However, the volatility has been on a rise in recent times and hence DOGE price tends to swing regardless of the direction. However, the current trend towards the south can be considered as an increase in the volatility rate.

Investors Shift their Focus From DOGE

Dogecoin whales hold a huge share of the tokens since the beginning. However, the price variations do occur due to the investors and the retail traders. As per the recent data, the investor count has decreased remarkably in the past 10 days dropping from 27 billion to 22 billion. 

Source: Intotheblock

DOGE Price Heading Towards Lower Support

Source: Tradingview

• The DOGE price has been rejected from the same resistance levels a couple of times dragging the price towards lower support 
• The asset now appears to be primed to plunge by another 8% to hit the support again and undergo a catapult action to rebound strongly
• However, the rebound may not uplift the price close to the resistance as the asset appears to have lost its strength notably

What is Dogecoin (DOGE)?

Additional Read: Top Cryptos other than Bitcoin: By Market Cap

Latest Updates on Dogecoin 

• Dogecoin launched its latest update, Dogecoin Core 1.14.6 to improve security, efficiency and user interface

#Dogecoin Core 1.14.6 is now released, live and current! With a good number of improvements under the hood and some nice new features in the UI. Get it here — https://t.co/7pn8tl4dwJ this is definitely a recommended update for everyone!

— Dogecoin (@dogecoin) July 20, 2022

Dogecoin On-Chain Metrics

Bearish Clouds Hover as MVRV Ratio Surges

Source: Santiment

The MVRV ratio, which is the ratio between the current price and the average price of every token acquired, is rising slowly. The ratio is rebounded from the lows indicating that the asset value is slowly rising. But as the ratio is negative, the price remains within undervalue limits. 

Dogecoin Whale Transaction Count has Depleted Heavily

Source: Santiment

The whale transactions have dropped massively ever since the asset plunged hard during the recent crash in May fueled by LUNA-UST

Rise in Dogecoin Daily Active Address 

Source: Santiment

Dogecoin’s daily active address is slowly rising since the beginning of the July monthly trade. 

Whale Accumulation on a Rise

Source: Santiment

The address that holds 100K to 1000K DOGE and 10 million & above coins have been accumulating more DOGE of-let

Dogecoin Price Prediction: Will DOGE Reach $1?

Doge Price ever since it rallied in 2021 and gained levels close to $0.8, the expectation of the asset hitting $1 has been on rising. However, the asset just before the May 2021 crash dropped hard and has maintained a descending trend since then. Moreover, the price amid the past couple of market crashes has dropped below $0.1 levels. 

The upcoming trend displays fewer chances of a rebound and hence the price is expected to shed some more of its value soon. Currently, after the fresh rejection, the DOGE price appears to be primed to hit $0.05 levels soon. Moreover, the rebound may also be pretty weak and hence the asset may reach above $0.1 levels by the end of 2022.

Additional Read: Dogecoin Price Prediction

Is DOGE Price A Good Investment Now?

Dogecoin price has undergone a bull run recently and since then the asset has been pretty calm, shedding most of its value. Therefore, the possibility of regaining the bullish momentum is significantly higher in the next couple of months. However, a detailed study and research are much required before entering the deal as Dogecoin is a highly volatile asset. 

FAQs

Price Data of 25th July 2022.

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