Today was not a good day for the global cryptocurrency market as the price of all the major cryptocurrencies fell briskly.
As a result of this drop in prices, the global market cap of the crypto market declined by 2%.
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Talking of Dogecoin, the price of meme tokens plummeted by 1% over the past 24-hours. At this specific time, Dogecoin is exchanging hands at $0.085902.
But the coin’s current price shows that it has slipped by 7% as compared to its all-time high mark.
If compared to the token’s current price with its last 30 days moving average, it shows that DOGE is currently down by 3%.
Dogecoin’s Trade Volume Makes Interesting Moves
As the global digital currency market has seen a decline of 2% in its overall market cap, DOGE’s trade volume also touches the $600M mark.
But earlier today this number touched almost the $1 billion mark, and investors were hoping that crypto whales are once more fencing investment in Dogecoin.
But the multiple reports have confirmed that meme coin is currently facing high selling pressure and more than expected investors are ready to sell Dogecoin.
The current market sentiment shows that technical indicators of Dogecoin are not favorable for the currency as its price cannot make a strong recovery anytime soon.
In addition to that the price of the meme coin can go further low in the short term.
Technical Indicators Related to Dogecoin (DOGE)
As trade began today, the relative strength index (RSI) of tokens dipped just below the 50 mark. The current level of RSI is not a positive sign for DOGE’s bulls.
But on the other hand, the current RSI level shows that there is still a lot of room available for the coin to bear loss before it finally being declared as oversold.
Furthermore, the past 30 days moving average of Dogecoin has plateaued in connection with its 200-day, suggesting that DOGE is on the edge before it finally falls.
As the overall market cap of the currency has touched a record high further price movements can occur in the price of meme coin.
All the technical indicators show that going forward the price of meme coins is bound to go down. Hence, market experts have warned that investors must be careful about investing in this coin.
The reason that the price of the token is bound to fall is high market selling pressure.
Just a few hours ago, a crypto whale has moved out 60 million DOGE (almost $5 million) from the coin base, the largest centralized cryptocurrency exchange after Binance.
However, in the U.S.A coin base is the largest cryptocurrency exchange. There have been multiple incidents where crypto whales are moving Dogecoin out of their digital wallets.
Back on 17th Feb 2023 another cryptocurrency wallet moved away from the dogecoins worth $28 million.
Crypto whales who were previously accumulating DOGE into their wallets, now seem to be moving the Dogecoin out of their wallet.
There are four to five other digital wallets that have withdrawn a staggering amount of dogecoins from their digital portfolio.
Market experts argued that these massive numbers can also mean that these crypto whales are changing their exchange. But still, such massive movements also give room to rumors and send the signal for possible panic in the market.
But as compared to January 2023, the price of dogecoin saw a decrease in its price in early Feb 2023. The current market scenario is not much different, the trend shows that Dogecoin can see further slip in its price.
However, this decline is only subject to the short term. In the long run of time, the overall sentiment regarding the price of Doge is still positive.
So, if you are one who is looking for short-term gain, Dogecoin is not an option for you.