Dogecoin (DOGE) has been one of the hardest-hit coins in crypto this year. Investors appear to be deliberately avoiding meme coins due to increased risk-off sentiment. Although DOGE consolidated after crashing two weeks ago, the upside potential remains significantly limited. Here are some highlights:
- Technical and fundamental analysis shows that DOGE is bearish right now
- The coin will struggle to regain its $0.17 support without a change in sentiment
- We should expect a further decline in the short term
DogeCoin – What does the future hold
Just a few weeks ago, $0.17 was considered one of DOGE’s strongest support zones. Although the coin had reported increased volatility in 2022, it managed to hold off the bears at this price. But $0.17 was eventually lost, and ever since DOGE has struggled to find enough demand to reclaim it.
From now on, the coin will need to increase by at least 100% to reach this threshold. We don’t think that will happen in the short term. If anything, fundamental and technical analysis shows that the meme coin is facing additional weakness.
From a technical point of view, DOGE remains heavily pressured under $0.1, a key overhead resistance zone. Also, RSI, an important momentum indicator, shows demand For DOGE has slowed.
From a fundamental perspective, worries about slowing economic growth and worries about rising inflation could drive investors away from the same coins. These factors will push DOGE towards $0.04 in the near term.
Should you buy or short DOGE?
Well, the obvious short-term play here is to short-sell the coin and wait for it to bottom at $0.04. However, due to high volatility, ensure there is enough margin to accommodate a price surge to at least $0.09.
However, there could be a buying opportunity for long-term play. When DOGE drops to $0.04, interested buyers should rush in immediately.
