The Dogecoin (DOGE/USD) price declined for the third consecutive day as the overall crypto universe crashed. The coin declined to $0.1650, which was the lowest level since June 22. It has a market value of more than $21 billion, making it the eighth biggest cryptocurrency in the world.
DOGE sell-off intensifies
Dogecoin, the cryptocurrency that was started as a joke, has been under pressure lately. Months after it rose to an all-time high of $0.7395, the coin has declined by more than 77%. This decline has coincided with the overall sell-off of cryptocurrencies. Indeed, the total market capitalization of all coins tracked by CoinMarketCap has dropped from more than $2 trillion to more than $1.18 trillion.
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Dogecoin price weakness is also mostly because it has recently lacked key catalysts. At its peak, Elon Musk was a key driving force for the coin. Today, his tweets and statements on the coin have barely had an impact on the coin’s performance. A good case in point is that his tweet on Sunday about the coin barely had an impact.
Further, DOGE has struggled because of the relatively low volume since the demand for cryptocurrencies has waned. In the past few months, the overall volume of all cryptocurrencies traded in key exchanges and brokerages like Robinhood have declined by more than 50%.
The ongoing sell-off of Dogecoin and other cryptocurrencies is mostly because of the overall fear about the rising number of Covid cases globally. While the pace of vaccinations has increased, there is evidence that many people are still getting the virus. As a result, countries like Australia have resumed lockdowns. Others like France are mulling returning curfews in key cities. This, in turn, has led to a major sell-off in key assets like stocks.
Dogecoin price prediction
Turning to the daily chart, we see that the Dogecoin price has been in a steep sell-off recently. As a result, it has declined below the 200-day and 50-day moving averages (MA). The coin is also trading at an important support level since it struggled moving below the price several times before. It has also formed a nice downward trend that is shown in black. Therefore, the coin will likely maintain the bearish trend as traders target the next key support at $0.100.
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