The biggest and most well-known meme coin, DOGE, is once again in the news after its biggest supporter, Elon Musk, declared he would switch from cryptocurrency to artificial intelligence (AI). The price of Dogecoin decreased this week along with the rest of the cryptocurrency market as a result of regulatory pressure and the "ghosts" of Sam Bankman-chaotic Fried's FTX exchange collapse.
Analyzing the Short-Term Technical Picture of the Dogecoin Price
Early in February, as the Federal Reserve poured down rate increases on the aggressive bullish party by 25 basis points, DOGE began to give back gains made in January.
Investors at the time thought a 0.25 percent increase in interest rates was favorable for hazardous asset classes. Jerome Powell's anti-inflationary comments, however, swiftly lost their significance as fresh statistics, including the Consumer Price Index (CPI), non-farm payrolls, and unemployment report, suggested that inflation would predominate over other issues in the months to come.
In light of this, it is probable that investors, particularly small-scale retail investors, will remain passive until they can predict the direction of the cryptocurrency market and, more specifically, the price of Dogecoin.
Take note that the loss of support at $0.08 suggests that there is a good likelihood that overhead pressure will increase this weekend. As a result, attention is focused on potential support levels at $0.074 and $0.07, respectively.
Dogecoin price would remain in the good graces of the bulls as long as its leg does not stretch further than $0.07. Otherwise, investors would begin to acclimatize to declines sweeping through lower key levels at $0.06 and $0.05, respectively.