The Dogecoin price has had a tough period in the past few months. DOGE, once a high-flying meme coin, is trading at $0.1565, which is about 30% below its highest point in December and about 80% below its all-time high. It has a market capitalization of more than $20 billion, making it the 12th biggest cryptocurrency in the world.
DOGE review
Dogecoin is a leading meme coin that gained popularity in 2021. The coin gained popularity after it was endorsed by Elon Musk, the richest man in the world. According to the Bloomberg Billionaire Index, he has a net worth of more than $278 billion.
In addition to being the wealthiest person in the world, Elon Musk is also a respected innovator who helped start some of the best-known companies in the world like PayPal, Tesla, and SpaceX. Therefore, his endorsement of Dogecoin pushed more retail investors to allocate some of their cash in it.
Most importantly, Tesla became one of the leading companies to start accepting Dogecoin. One can buy the company’s merchandise and accessories using the coin.
However, Dogecoin’s popularity inspired more developers to build similar cryptocurrencies, which led to more competition. The best-known meme coin after Dogecoin is Shiba Inu, which is now valued at more than $16.2 billion. Other popular meme coins are Dogelon Mars, Floki Inu, and even Let’s Go Brandon coin.
2022 will likely be a difficult year for Dogecoin and other meme coins because of the Federal Reserve. In November, the bank decided to start tapering its asset purchases program. It then increased the size of asset purchases in December.
Minutes published by the Fed on Wednesday showed that officials were concerned about inflation, which they previously said was transitory. This means that they will implement about three rate hikes this year. These hikes could help to drag the Dogecoin price lower.
Dogecoin price prediction
The daily chart shows that the DOGE price has been in a bearish trend in the past few months. As a result, the coin has moved below the 25-day and 50-day exponential moving averages.
A closer look at Dogecoin shows that it is trading at a key support level where it struggled moving below in December. Oscillators have also been falling.
Therefore, while a rebound is still possible, I suspect that the Dogecoin price will keep falling a bears target the key support at $0.10.
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