The Dogecoin price has plunged by 12% in the past 24 hours, sinking to $0.09458 as Mt. Gox selloff fears continue to weigh down the cryptocurrency market.
DOGE has now lost 24% in a week and 42% in a month, with the long-running meme coin now up by only 37% in the past year.
This represents a big comedown from where it was in May and late March, with the token also 87% down from its all-time high of $0.7316, from May 2021.
Such a decline is worrying, and while there are concerns that Dogecoin could be suffering from a long-term decline, its technicals indicate an incoming rebound.
Dogecoin Price Forecast: DOGE Falls Below $0.10 – Could Dogecoin Hit Zero?
DOGE’s falloff in the past few days has no doubt been dramatic, but it has at least put it in a heavily oversold position, from where it should normally rebound.
Its 30-day moving average (orange) has now fallen much further below the 200-day (blue) than it has been for several months, implying that its price is now too low.
Source: TradingViewIts relative strength index (purple) is also saying the same thing, having fallen below 20 earlier this morning, which should be a big green flag for anyone looking to buy DOGE on the cheap.
One mixed signal is Dogecoin’s trading volume, which has risen to $1.6 billion in the past day, its highest level in about a month.
This rise in volume suggests a rush to offload the token, although on the other hand, it also suggests willing buyers at lower price points.
400,000,000 #DOGE (41,081,558 USD) transferred from unknown wallet to #Binancehttps://t.co/N8KfXvgIze
— Whale Alert (@whale_alert) July 5, 2024
But for now, it could be the case that DOGE, along with the rest of the market, falls a little further before recovering, especially when whales still seem to be offloading.
The main reason for the market’s heavy slide in the past couple of days is that Mt. Gox’s trustees are preparing to return around $9bn in Bitcoin to former customers of the failed exchange.
The fear is that most of these creditors will dump their BTC, although this is debatable, given that Bitcoin’s price has taken such a hit recently.
Yet things also aren’t helped by the German government, which has sold close to 10,000 BTC in recent weeks, and still has 40,000 BTC left to offload.
This has all taken its toll, causing bearishness to spread rapidly, and hurting the Dogecoin price in the process.
It could fall to $0.08 in the next few weeks, before recovering to $0.10 by Q4.
New Meme Tokens Offer Bigger Returns
Because Dogecoin has underperformed in recent weeks, it may be preferable for traders to turn to newer meme coins, particularly those holding their presales and preparing to list.
Popular presale coins can often rally big once they list for the first time, with one of the most promising right now being PlayDoge (PLAY), an Ethereum-based play-to-earn cryptocurrency.
It has raised more than $5.3 million in its sale, with investors clearly impressed by its fundamentals.
Introducing #PlayDoge – the only #P2E Doge companion!
Inspired by the legacy of #Tamagotchi, feed, train and play with your 2D Doge to earn $PLAY.
Don’t neglect your doge, his life’s on the line
Join the #Presale Now https://t.co/JT0VEofqf2 pic.twitter.com/RoJYXLS1FH
— PlayDoge (@PlayDogeGame) June 3, 2024
As a play-to-earn game, PlayDoge offers gamers the chance to earn rewards in PLAY for breeding, trading and completing missions with their own virtual pet dogs.
Drawing inspiration from the much-loved Tamagotchi handheld games from the late Nineties, it will feature retro 8-bit graphics and fun side-scrolling gameplay.
PLAY will be the native token for in-game transactions, which means that it will experience growing demand in parallel with the growth of PlayDoge as a game.
Its supply will have a cap of 9.4 billion, while it will also be available for staking, which incentivizes longer term holding.
The combination of staking with a cap should mean that, over time, PLAY will experience a steadily rising price.
There isn’t long left until the sale ends and PLAY lists, yet latecomers can join by going to the PlayDoge official website.
PLAY currently costs $0.00515 per token, a price that is likely to seem pretty low once the coin finds itself on exchanges.
Visit PlayDoge Now
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