Dogecoin price crashed to the lowest level since October 29 as the Twitter buyout momentum faded. DOGE slipped to a low of $0.0962, which was sharply lower than this month’s high of $0.1588. Other meme coins like Dogelon Mars, Shiba Inu, and Tamadoge also plunged sharply.
Dogecoin price surged hard earlier this month after Elon Musk closed his Twitter acquisition. He now owns one of the most powerful and least profitable companies in the world. As a result, the DOGE price surged as investors priced in more demand for Dogecoin since Musk is one of its biggest supporters. In previous statements, Musk said that he would incorporate DOGE into Twitter’s ecosystem.
This explains why Dogecoin price surged in October. Most recently, however, the coin’s price has retreated sharply as the momentum wanes. This is known as buying the rumour and selling the news situation.
DOGE also declined after the Fed predicted that interest rates will remain high for a long time. In a statement last week, Jerome Powell insisted that the bank was not done yet raising interest rates. He also said that the bank will be data-dependent.
And with the labor market tightening and with inflation at an elevated level, there is a likelihood that the bank will keep rising. Like Shiba Inu, Dogecoin also plunged due to the Alameda Research contagion risks.
On the 4H chart, we see that the DOGE price has been in a strong bearish trend in the past few days. It managed to move below the important support level at $0.1120, the lowest level on October 30. The coin has also crashed below the 50-day moving average. A closer look shows that it has formed a small doji pattern.
Dogecoin price will likely continue falling as sellers target the key support level at $0.085. A move above the resistance at $0.1078 will invalidate the bearish view.
This post was last modified on Nov 08, 2022, 08:36 GMT 08:36