The Dogecoin price is struggling. DOGE is trading at $0.3625, which is the lowest it has been since Saturday this week. This decline has brought the total market capitalization to more than $48 billion. It is the sixth-largest digital coin in the world.
Dogecoin rally fades
Last week, Dogecoin rocketed higher after Coinbase announced that it will add it to the Coinbase Pro platform. The news pushed the currency higher because of the role that Coinbase plays in the crypto industry. The company has a market capitalization of more than $47 billion. Investors believed that the listing will lead to more demand of the coin.
Dogecoin price rallied also because of the strength of the performance of meme stocks. As you recall, meme stocks like AMC more than doubled last week as activity in social media increased. This hype has eased in the past few days after AMC announced that it will use the rally to boost its balance sheet. Also, it emerged that the company’s executives were selling shares in large numbers.
The Dogecoin price is struggling because of the performance of the rest of the cryptocurrency industry. Most large cryptocurrencies have struggled in the past few days. The Bitcoin price is at $36,000, a range that it has been in the past few trading sessions. Similarly, other cryptocurrencies like Ethereum, Ripple, and Cardano have barely moved in the past 24 hours. The top movers in the crypto industry are Theta Fuel, Nexo, and Tezos.
Dogecoin price prediction
In my last article on the Dogecoin price, I wrote that I was cautiously optimistic about the coin. I cited a head and shoulders that was forming on the daily chart.
Today, I will focus on the four-hour chart. As you can see, DOGE has been in a consolidation mode in the past trading sessions. As a result, this has seen it form a symmetrical triangle pattern that is shown in black. In technical analysis and price action, such a triangle is usually a sign of a potential breakout. This breakout typically happens when this triangle reaches its confluence zone.
Another evidence that big moves could be ahead is that the coin’s volatility has dropped. The Average True Range (ATR) indicator has dropped to the lowest level since April this year. This is another sign that the coin is having a calm before the storm moment.
Therefore, in my view, I suspect that the Dogecoin price is about to have some major moves this week. The direction of these moves is not yet clear. However, in an earlier article, I noted that Bitcoin price will likely have a bearish breakout. As such, since cryptocurrencies tends to have a close correlation, there is a possibility that DOGE’s breakout will be lower.