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Dogecoin price plummeted to $0.13 on July 26, 2024, amid a noticeable lack of institutional interest. Here’s a closer look at what DOGE traders might expect as the month draws to a close.
Dogecoin Falls 19% as Ethereum ETF Excitement Wanes
Between July 5 and July 18, the global cryptocurrency market was invigorated by dovish NFP and CPI data, which reignited investor interest. During this period, Dogecoin surged by an impressive 57%.
However, since July 19, Dogecoin has faced significant downward pressure, influenced by new developments in the US political landscape and the launch of Ethereum ETFs.
On July 21, President Joe Biden announced his withdrawal from the 2024 Presidential race, shifting the electoral momentum towards Donald Trump. Given Trump’s favorable stance on Bitcoin, this development has drawn investor attention more towards BTC.
In addition, the Ethereum ETFs, which launched on July 23, spurred a surge in institutional demand for ETH, achieving nearly $2 billion in trading volumes within the first two days.
These events have led to a notable shift in investor focus towards Bitcoin and Ethereum, leaving other cryptocurrency sectors, including meme coins like Dogecoin (DOGE), struggling for traction.
During the period from July 5 to July 18, Dogecoin’s price experienced a robust rally of 57.26%. However, as traders shifted short-term focus towards BTC and ETH, DOGE price trend took a downward swing.
As shown in the chart, Dogecoin is now trading at $0.13 as of July 26, marking a 13% decline from the monthly peak of $0.143 posted on July 18.
This situation suggests that investors are increasingly reallocating capital towards Bitcoin and Ethereum, which has led to a dearth in demand across other cryptocurrency sectors.
Additionally, last week’s 57.26% rally indicates that Dogecoin traders are currently holding high unrealized profits, which heightens the risk of rapid corrections. Also, if Donald Trump’s speech at the Bitcoin Conference in Nashville triggers more bullish catalysts for BTC, it could drive Dogecoin’s price further downward amid the current market dynamics.
Dogecoin Price Forecast: Trump Heightens Risk $0.10 Reverse
Dogecoin has seen a notable price movement, trading at $0.1295 on July 26, 2024, with recent volatility influenced by broader market conditions and political events. The technical indicators in the provided chart suggest a mixed outlook, with both potential support and resistance levels in play.
The Bollinger Bands indicate that Dogecoin has been experiencing higher volatility recently, as evidenced by the widening bands. The current price of $0.1295 sits near the middle band, which often acts as a pivot point.
Immediate resistance is seen at $0.1425, the upper Bollinger Band, which aligns with recent highs. Should DOGE break above this level, it could signal a continuation of the uptrend, potentially targeting the next psychological resistance at $0.15.
On the downside, the lower Bollinger Band at $0.0986 provides a significant support level. This coincides with the previous consolidation phase and a psychological round number, making it a critical level to watch. A drop below this could see DOGE revisiting the $0.10 mark, which has historically been a strong support area.
The relative Strength Index (RSI) indicator is currently at 54.51, suggesting a neutral stance but slightly leaning towards bullish momentum. The RSI above 50 typically indicates buying interest, but it is not yet in the overbought territory above 70, suggesting there is still room for upward movement.
However, if the RSI begins to trend downward and falls below 50, it could indicate a shift toward bearish momentum.