Why Is Dogecoin Price Down Today?
August 17 2023 - 7:00PM
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The Dogecoin price is down around 5% in the last day following the
general market crash. The meme coin which had seen improved
sentiment did a quick 180 and started to bleed. However, while the
Dogecoin price could only be following Bitcoin’s descent, are there
other factors driving the decline? Why Is Dogecoin Price Falling?
One reason that the Dogecoin price is down today is due to its
proximity to Shiba Inu. The latter saw a highly anticipated
Shibarium launch go awry on Wednesday, sparking rapid declines
among the meme coins in its ecosystem. Related Reading: Can
Ethereum Price Cross $2,000 Before The End Of August? As a result
of this unfortunate event, the price of SHIB fell almost 10% in a
matter of hours and this seemed to have spilled over to Dogecoin.
Dogecoin, being a meme coin and the largest competitor for Shiba
Inu, was expected to rally if SHIB had gone up as a result of the
Shibarium launch. There is also the issue of competition expected
between Dogechain and Shibarium, further fueling this correlation.
The problem with such correlations is that they tend to follow the
same negative, as well as positive, path. Given this, when the
price of Shiba Inu started to fall, Dogecoin followed suit with the
expectations that both of these assets would go in the same
direction. DOGE price falls alongside SHIB in volatile market
conditions | Source: DOGEUSD on Tradingview.com Additionally, DOGE,
being one of the top 10 largest-crypto in the space, often tracks
the performance of Bitcoin quite closely. So as Bitcoin declined
off the back of the FOMC meeting, Dogecoin was hit with a
double-decker bus, plunging it deep into the red territory. Can
DOGE Price Recover From Here? It is not all bad news for Dogecoin
according to crypto analyst “Tony The Bull.” In a recent analysis,
he points out that DOGE had tagged the 1-month parabolic SAR. Now,
this is notable because the last time the meme coin touched this
level was back in 2021. DOGE tags 1M Parabolic SAR | Source: Tony
The Bull on X The result of this was that DOGE’s price went from
$0.0018 to over $0.7. This translated to an over 24,000% increase
at the time. So it stands to reason that if the altcoin is tagging
this 1M parabolic SAR again, then there could be a rally in the
near future. Related Reading: Will Bitcoin Price Crash Similarly To
2019 And 2020? However, it is unlikely that the price of DOGE will
actually rise more than $50 at this level. This is because the
crypto market is still in peak bear season while 2021 was peak bull
season. Nevertheless, a rally toward $0.09 is not out of the
question. Follow Best Owie on Twitter for market insights, updates,
and the occasional funny tweet… Featured image from iStock, chart
from TradingView.com
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