Dogecoin loses momentum due to the decline in the hype around Twitter: what to expect from the price of DOGE
Date: 2023-07-30 Author: Karina Ziganova Categories: BLOCKCHAIN
The price of Dogecoin soared by 20% as market participants reacted positively to Elon Musk's decision to change Twitter's name to X.
However, the hype around the rebranding of the social network gradually began to subside, and DOGE began to lose momentum.
Bears seized control of Dogecoin
The Relative Strength Index (RSI) signals that the sentiment of Dogecoin holders has changed to bearish. After soaring to euphoric highs after changing the name of Twitter to X, its value fell below the 70 mark, which indicates an increase in selling pressure and the possibility of a correction.
Strategic investors may interpret the RSI readings as a reason to sell DOGE in the coming days.
Traders record short-term trades
The current actions of traders confirm the possibility of a correction. According to the analytical platform IntoTheBlock, market participants placed orders to sell 193 million and buy 170.93 million DOGE.
As you can see from the chart above, the dynamics between Dogecoin's buy and sell orders are tilted in favor of the bears. Given the negative sentiment of traders and the RSI readings, the number of people who want to get rid of the meme coin may increase significantly.
DOGE Price Prediction: Bears Target $0.070 Level
As Dogecoin loses momentum, the $0.075 support level will become critical to prevent a prolonged downtrend. The 217,000 wallets that purchased 23.8 billion DOGE at an average price of $0.074 will provide some support to the memecoin — but if they don't hold out, the asset will retreat in the direction of $0.07.
In case of consolidation above $0.08, the bulls will seize the initiative. 143,000 addresses that bought 9.14 billion coins may prevent the price from breaking higher. However, a successful breakout attempt will send Dogecoin to the $0.085 mark.
