Dogecoin price down today, why?
Dogecoin price down today, why?
The Blockchain Industry: Insights and Analysis
Introduction
The cryptocurrency market experienced a decline in the price of Dogecoin (DOGE) recently, following a broader correction in the industry. On July 18, the price of DOGE fell by 1.75% to $0.068, slightly underperforming the rest of the crypto market, which dropped by 1% during the same period. This decline was triggered in part by Elon Musk’s recent activities. To better understand the implications of this price movement and gain a deeper insight into the blockchain industry, let’s delve into the details.
Elon Musk Triggers DOGE Profit-Taking
Dogecoin’s price decline can be attributed to a broader correction from its local high of $0.075, which was established following Ripple’s partial win over the U.S. Securities and Exchange Commission (SEC) three days ago. However, the day before the decline, DOGE experienced a short-lived gain of 5.3% to $0.073, thanks to Elon Musk’s involvement. The billionaire appeared to reference the meme-cryptocurrency in a tweet, causing a surge in its price:
“Doges” – Elon Musk (@elonmusk) July 17, 2023
As a result, traders took advantage of the temporary price increase enabled by Musk, leading to a pullback on July 18. Additionally, enthusiastic bulls across crypto derivatives exchanges were caught off guard by the downside move, resulting in long liquidations worth $1.50 million in the past 24 hours. This further intensified the selloff.
- Euro Stablecoin Market to Expand with Real-World Use Cases and Clear Regulations
- Leveraged bullish longs liquidated as Bitcoin market softens
- Bitcoin rebounds to $30.1K after retreating to June low.
Figure 1: DOGE total liquidation chart. Source: Coinglass
DOGE Price Outlook in July
From a technical standpoint, DOGE’s correction began after testing a resistance confluence consisting of its 200-day exponential moving average (EMA) and a multi-month descending trendline. As of July 18, DOGE/USD remained above the support of the 50-day EMA near $0.068. However, a failure to sustain this level could lead to an extended decline towards $0.066 in July. This support confluence is formed by a horizontal line and an ascending trendline.
On the other hand, if DOGE manages to bounce back from the 50-day EMA, it could potentially test the resistance confluence near $0.075 as its upside target for July.
Figure 2: DOGE/USD daily price chart. Source: TradingView
Dogecoin Price Long-Term Outlook
On the daily chart, Dogecoin has formed what appears to be a “BARR Bottom” pattern. BARR stands for Bump-and-Run-Reversal, which is a technical setup perceived as a bullish reversal pattern when formed during a bear market. As of July 18, DOGE price seems to be in the breakout stage of this pattern.
Figure 3: DOGE/USD daily price chart. Source: TradingView
If the BARR Bottom pattern is confirmed by further gains, Dogecoin’s price could potentially grow by as much as the pattern’s maximum height. In other words, a bullish target of $0.088 by September 2023 could be achieved, representing a 30% increase from the current price levels.
Conclusion
The recent price decline of Dogecoin, influenced by Elon Musk’s activities, highlights the volatility and interconnectedness of the cryptocurrency market. While short-term profit-taking and bearish trends may cause temporary setbacks, it is essential to consider the long-term potential of cryptocurrencies such as Dogecoin. Technical analysis suggests the possibility of a bullish reversal pattern and a potential upward trajectory for DOGE in the coming months.
As the blockchain industry continues to evolve, it is crucial to stay informed about market trends, technological advancements, and influential factors that shape the market. By understanding the dynamics of the blockchain industry, investors and enthusiasts alike can make better-informed decisions and navigate the market with greater confidence.
References: – Cointelegraph: DOGE/USD daily price chart – Cointelegraph: DOGE total liquidation chart – Cointelegraph: DOGE/USD daily price chart – Cointelegraph: DOGE/USD daily price chart
