Ethereum
Is the Trump factor behind all this?
The price of Dogecoin dropped to $0.13 on July 26, 2024, due to a notable lack of institutional interest. Here’s a closer look at what DOGE traders can expect as the month draws to a close.
Dogecoin Falls 19% as Enthusiasm for Ethereum ETF Fades
Between July 5 and 18, the global cryptocurrency market was boosted by NFPs and CPI Datawhich has rekindled investor interest. During this period, Dogecoin has jumped 57%.
However, since July 19, Dogecoin has been facing significant downward pressure, influenced by new developments in the US political landscape and the launch of Ethereum ETFs.
On July 21, the President Joe Biden announced his withdrawal from the 2024 presidential race, reversing the electoral trend in favor of Donald Trump. Given Trump’s favorable stance on Bitcoin, this development has drawn more investor attention to BTC.
Additionally, Ethereum ETFs, launched on July 23, have driven a surge in institutional demand for ETH, reaching nearly $2 billion in trading volumes in the first two days.
These events have led to a notable shift in investor focus towards Bitcoin and Ethereum, leaving other sectors of cryptocurrencies, including meme coins like Dogecoin (DOGE), struggling for traction.
During the period from July 5 to July 18, the price of Dogecoin saw a sharp increase of 57.26%. However, as traders shifted their short-term focus to BTC and ETH, the DOGE price trend took a downward direction.
As the chart shows, Dogecoin is now trading at $0.13 as of July 26, down 13% from its monthly high of $0.143 on July 18.
This situation suggests that investors are increasingly shifting their capital towards Bitcoin and Ethereum, which has led to a lack of demand in other cryptocurrency sectors.
Furthermore, the 57.26% increase over the past week indicates that Dogecoin traders are currently holding high unrealized profits, which increases the risk of a quick correction. Furthermore, if Donald Trump’s speech at the Nashville Bitcoin conference triggers more bullish catalysts for BTC, it could push Dogecoin’s price further down amid the current market momentum.
Dogecoin Price Prediction: Trump Raises Risk of $0.10 Reversal
Dogecoin price has seen notable movement, trading at $0.1295 on July 26, 2024, with recent volatility influenced by general market conditions and political events. Technical indicators on the provided chart suggest a mixed outlook, with potential support and resistance levels in play.
The Bollinger Bands indicate that Dogecoin has been experiencing higher volatility recently, as evidenced by the widening bands. The current price of $0.1295 is near the middle band, which often acts as a pivot point.
Immediate resistance is seen at $0.1425, the upper Bollinger Band, which corresponds to recent highs. If DOGE breaks above this level, it could signal a continuation of the uptrend, potentially targeting the next psychological resistance at $0.15.
On the downside, the lower Bollinger Band at $0.0986 offers a strong support level. This coincides with the previous consolidation phase and a psychological round number, making it a critical level to watch. A drop below this level could see DOGE revisit the $0.10 mark, which has historically been a strong support zone.
The Relative Strength Index (RSI) is currently at 54.51, suggesting a neutral stance but slightly tilted toward bullish momentum. RSI above 50 generally indicates buying interest, but it is not yet in the overbought territory above 70, suggesting there is still room for upside.
However, if the RSI starts to decline and falls below 50, it could indicate a shift towards bearish momentum.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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