- Dogecoin’s DOGE is down 4% in 24 hours
- Most cryptocurrencies are falling ahead of inflation data on Wednesday
- DOGE could touch the $0.05 bottom if the current weakness persists
Dogecoin DOGE/USD is trading at $0.0645. The price is down more than 4% in 24 hours as most cryptocurrencies fell on Monday. DOGE is now at risk of falling back to the low of $0.05 if the current weak sentiment prevails.
The price of Dogecoin has historically been fueled by social media mentions and listings. The cryptocurrency is labeled a meme coin owing to its reactions to influencer mentions. Elon Musk, the Tesla CEO, has been influential for the token. Recently, speculations were that Twitter would allow DOGE payments once acquired by Musk. With the acquisition now in doubt, DOGE users could be coiling back after a not-so-good crypto sentiment.
Dogecoin’s weakness also stems from the overall decline in cryptocurrencies. At the time of writing, Bitcoin and Ethereum have fallen over 3%. The weakness could reflect concerns about the Federal Reserve’s tighter policy. An inflation data expected on Wednesday should be a turning point for cryptocurrencies. A high jump in inflation could fuel faster central bank action and lead to another drop in cryptocurrencies.
DOGE falls below a short-term moving average
Technically, DOGE is bearish. The price fell below the 14-day and 21-day moving averages, affirming the bearish pressure. The price is yet to enter the oversold level as the meme coin attracted buyers recently. The price could continue falling to find the previous support at $0.05.
Final Thoughts
Investors should not buy DOGE now as the price is under bearish control. The price might rise if the sentiment improves, but before that, it might bottom out at $0.05. Wednesday’s inflation data is a key event to watch.
