The scenario of the memecoin goes hand in hand with low volatility and profit-taking after abrupt price increases in this segment. Dogecoin is among the Top 10, so it is hard to think that it could disappear.

The price of Dogecoin (DOGE) had a tremendous start to the year but now cannot resume its upward trend. The following analysis will help understand why it is falling and whether it could start to rise soon.

DOGE is trading at around USD 0.22 and has accumulated a profit of 1.9% in the last 24 hours. Its trading volume is above USD 1.2 billion, and its market capitalization is about USD 29.38 billion, according to CoinGecko.

Reasons Why the Price of DOGE Is Falling

The fever for the DOGE cryptomeme is over for now, which may have caused the decline in its price.

The value of Shiba Inu is falling with that of Dogecoin, leading to think this fashion has taken a break.

The current scenario of that coin goes together with the low volatility in the cryptocurrency market. Besides, there has been profit-taking after the abrupt price increases in this segment of memecoins.

Google Trends indicates that the search interest of the term Dogecoin is currently 4 out of 100. It reached the maximum peak in May when the price rose entirely parabolically while enthusiasm exceeded the searches of the word Bitcoin.

The interest in the term Dogecoin is lower than that of SHIBA, suggesting a significant drop in the popularity of the former.

Nobody Knows Whether the Cryptomeme Will Disappear

There is an extremely low probability that DOGE will disappear, at least in the short term. The memecoin born in 2013 has remained among the most outstanding in the market for several years.

Now that Dogecoin is among the Top 10, it is harder to think that it could disappear. The community behind this coin exists and, as long as it does, it will not allow the price to go to zero.

However, there is almost nothing behind this cryptocurrency project other than laughter. It is most unlikely that the considerable gains seen in previous months will continue to repeat themselves.

With a price of USD 0.22, the market capitalization of DOGE is currently USD 29.38 billion. Believing the price will reach USD 1 is expecting that its capitalization will exceed that of Binance Coin (BNB).

Even though that is too unlikely and unsustainable, nobody can rule out that those coins will cause surprise again soon.

Technical Analysis of the Price of DOGE

The weekly chart of the price of Dogecoin indicates that the price is falling continuously without getting support yet.

However, the fall is not too worrying since it is in a broader range, nothing more than rest after a big bullish rally.

Buyers are still the dominant force and, as long as the support zone between USD 0.18 and USD 0.13 remains, the bulls could regain control soon.

For a significant rally to take place, its price must break through resistance at USD 0.34. However,  many trust this coin because it is not reaching lower lows, which is a good sign of strength.

By Alexander Salazar

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