Dogecoin [DOGE] Continues to Decline After Poor October Performance

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Dogecoin chart

While the rest of the market was consolidating over the past two weeks, Doge was declining. This was part of the prolonged correction which has taken place since Doge spiked at the start of September. The spike at the start of September saw Dogecoin’s price increase from support at $0.0022 to a high of $0.007.

A bearish divergence where price continued to increase despite RSI forming a lower high preceded the correction which has continued up until now. Price reached $0.0036 late last week and had a brief recovery back near $0.0045 but now has returned to declining. The RSI has formed a higher high while the price has formed a lower high which could mean the decline is approaching its end. However, with the market structure of this decline still showing price action in a downtrend, price looks likely to continue to fall.

Doge Daily Priced Against USD – Source: TradingView.com

The market leader Bitcoin broke its two-week consolidation today with a 3% fall. Most altcoins have underperformed with this fall leading to Bitcoin further increasing its dominance and now representing over 54% of the total cryptocurrency market cap.

Doge has been no different and has dropped from a price of 66 satoshis (0.00000066 Bitcoin) to 61 satoshis today. The price action of Dogecoin priced against Bitcoin looks similar to the price action of Dogecoin against USD and looks likely to continue to lose value against Bitcoin.

With 5 Billion new Doge coming into existence every year and a large supply of 116 Billion Doge already in existence, the model of the meme-based coin is likely to struggle to retain its value compared to Bitcoin. Bitcoin decreases the amount it issues into existence every four years, and many view it as digital gold.

Doge Daily Priced Against Bitcoin – Source: TradingView.com

Key Takeaways:

  • The price of Doge has been decreasing since a spike in early September.
  • After a brief recovery late last week, Doge returns to declining as it loses its value against both USD and Bitcoin.
  • RSI has formed a higher high while Doge has formed a lower high. This typically shows the drop is approaching its end but most other factors point towards Doge continuing its decline.

Dogecoin [DOGE] Continues to Decline After Poor October Performance was originally found on [blokt] – Blockchain, Bitcoin & copy trading cryptocurrency.