The Rollercoaster Fate of Dogecoin: Can It Rise Again?
Recently, it has fallen into a difficult predicament, with its price plummeting like a kite with a broken string, dropping for three consecutive days, and along with its peers in the cryptocurrency world such as Shib and Floki, it has fallen into a heartbreaking correction vortex.
Currently, all eyes in the market are on the upcoming 5.8 billion Dogecoins. This 5.8 billion Dogecoins hang over the market like the Sword of Damocles, leaving investors both anxious and subtly hopeful.
After all, once such a large quantity of Dogecoin enters the market, its liquidity direction and trading strategies could have a huge impact on the price trend of Dogecoin and could also become the key opportunity for its revival. People are speculating whether this will be a timely rain to save Dogecoin from peril? Or will it further exacerbate its price volatility, becoming the last straw that breaks the camel's back?
Looking back at Dogecoin's price trend this month, it has been nothing short of a thrilling nightmare. It feels like being on a crazy roller coaster, plunging down sharply to around $0.36. Investors who rushed in when the price was rising now watch their shrinking assets, and panic spreads quickly.
In terms of short-term price trends, the outlook for Dogecoin is indeed hard to be optimistic about. Well-known analyst Gonzo points out that the current price of Dogecoin is being firmly suppressed by the 100-day moving average ($0.4073), like a mountain pressing down on its head, making it hard to breathe. Every time the price tries to rise, it faces strong resistance as it approaches this average line, as if an invisible hand is forcefully pressing it down.
However, just as there is always a ray of hope in the dark, there are always uncertainties and hopes in the market. If Dogecoin can accumulate enough strength to break through this seemingly insurmountable 100-day moving average, it will likely rekindle the market's enthusiasm and confidence, attracting new capital inflow, thus embarking on a rising journey once again.
