Dogecoin Price Slides Further Within Descending Triangle

Dogecoin price has been among the worst-performing cryptocurrencies this year, recording significant losses over the period. The memecoin has crashed by more than 30% over the past week and nearly 17% in the year to date. At the time of writing, Dogecoin was trading 3.82% lower at $0.05863, adding to previous losses. Dogecoin’s total market cap has dipped by 4% over the past 24 hours to $8.3 billion, while the total volume of the asset traded over the same period increased by 124%.

Fundamental Analysis

Dogecoin price was in the red on Monday as the cryptocurrency market continues to weather poor conditions. The cryptocurrency remained unchanged on Friday despite news of Elon Musk facing a SEC investigation. Elon Musk – often referred to as DogeFather, is under investigation for alleged violation of federal securities laws. Last week on Thursday, the Wall Street regulator filed a subpoena seeking Musk’s compliance with its investigation.

The decline in the cryptocurrency market sentiment on the back of a decline in risk appetite has been weighing on crypto prices over the past few sessions. The Crypto Fear and Greed Index is currently at a fear level of 45, suggesting investors’ lack of confidence in the sector.

The global crypto market cap has decreased by nearly 2% over the last day to $1.07 trillion, while the total crypto market volume increased by 38%. Crypto bigwigs, Bitcoin and Ethereum, have crashed by more than 1.50% over the last day, contributing to the poor market conditions and decline in other crypto prices due to their close correlation. At press time, Bitcoin and Ethereum were trading lower at $27,458.75 and $1,589.27, respectively.

Global macroeconomic concerns have also played a key role in the dull crypto market. Investors are following remarks by members of the Federal Open Market Committee (FOMC), hunting for clues on the Fed’s future monetary policy path. Several Fed members, including San Francisco Federal Reserve President Mary Daly, have reiterated that the interest rate hike cycle could halt if the labor market and inflation continue to cool or financial conditions remain tight.

The focus will be on a string of key economic data slated to be published this week, including the Producer Price Index (PPI) data and the key inflation data, the Consumer Price Index (CPI). Notably, the FOMC meeting minutes for September are scheduled to be published later on Wednesday.

Dogecoin Price Prediction

The daily chart shows that the Dogecoin price has been on a steep decline for the past few weeks amid an ongoing bear market. The DOGE price has been trading in a descending triangle (shown in yellow) since August. The memecoin remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages.

Its Relative Strength Index has been hovering below 50 since August and is currently at 32, suggesting an increase in selling pressure. The momentum indicator, as well as the Moving Average Convergence Divergence (MACD) indicator, is signaling a sell rating.

Therefore, the Dogecoin price is likely to continue falling in the ensuing sessions as bears eye the immediate support of $0.05575. A drop below this level could prompt a further decline to the psychological support of $0.05. However, a flip above the resistance level at $0.06355 could push the price higher to $0.06880, invalidating my bearish thesis.

DOGE Price Chart