The Dogecoin price is struggling ahead of the upcoming US inflation data scheduled for Friday. DOGE is trading at $0.167, which is about 80% below its highest level this year. Its market capitalization has declined to more than $22 billion making it the 12th biggest cryptocurrency in the world.
DOGE weakness continues
There are several reasons why the Dogecoin price is retreating today. First, the decline is coinciding with the overall crash of other cryptocurrencies and assets. Indeed, the total market capitalization of all cryptocurrencies has declined to about $2.3 trillion.
This means that it has crashed by more than $800 billion in the past few weeks. The decline is broad-based. Big cryptocurrencies like Bitcoin and Ethereum have all declined while the total value locked in Decentralized Finance (DeFi) have all declined.
The same is true with other assets. Global stocks have declined sharply today. In Europe, the DAX, CAC 40, and Stoxx 50 have all declined by more than 0.40%. Most commodities have also declined while the US dollar index has tilted higher.
This decline is mostly because investors are waiting for the upcoming US consumer inflation data that will come out later on Friday. These numbers are expected to show that the country’s inflation rose from 6.2% in October to about 6.8% in November. Some analysts believe that inflation rose to 7%.
These numbers come less than a week ahead of the latest Fed decision. Therefore, the Dogecoin price and that of other assets is declining because of the rising worries of a tighter monetary environment.
Second, Dogecoin and Shiba Inu prices are retreating because interest in meme coins has faded in the past few months. A quick look at Google Trends and social media mentions show that activity has declined. For example, Elon Musk has remained muted about Dogecoin in the past few weeks.
Third, it has declined because of profit-taking. Besides, Dogecoin has jumped by more than 1,000% this year alone.
Dogecoin price prediction
The daily chart shows that the DOGE price has been in a bearish trend in the past few months. It has moved below the 25-day and 50-day moving averages while the price has formed a descending triangle pattern. In price action analysis, this pattern is usually a bearish sign.
Therefore, while it is relatively too early to tell, there is a likelihood that the Dogecoin price will keep falling as bears target the key support at $0.10.
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