Leading memecoin Dogecoin (DOGE) appears to be making an attempt towards recovery, trying to reclaim the $0.25 level after yesterday’s flash crash, enjoying the support of its loyal community despite the sharp sell-offs across the board. At the time of writing, DOGE/USD is trading around $0.24.
The cryptocurrency which started as a joke has failed to experience much of a rise in recent weeks even as the altcoin market rallied strongly, a possible sign that investors are losing interest in its capabilities. At a time when most of the growth in the crypto market is being driven by the rising demand for DeFi and NFTs, Dogecoin has little to offer and investors are turning away from the coin towards more serious cryptocurrencies that offer higher levels of versatility and credibility in the market.
Are Investors No Longer Interested in Dogecoin?
Tuesday’s flash crash sent Dogecoin down sharply and while all digital currencies suffered sell-offs after market leader Bitcoin slid sharply under the $50,000 mark, what’s even more worrying is the sharp drop in the social sentiment around the memecoin. For a cryptocurrency like DOGE that depends mainly on the level of engagement among its community online, a fall in social sentiment – a metric of how actively it is being discussed on social media, spells a lot of trouble and possibly points a downtrend coming up soon.
While many experts in the crypto community consider a flash crash to be a momentary correction within the overall market, it can scare new investors off the market for a considerable period of time. This is especially bad news for memecoins like Dogecoin and Shiba Inu that have gained significant traction among the newer, unsure investors dipping their toes in the space by making small investments with low levels of exposure to risk from possible losses.
On a positive note, however, news of adoption of the cryptocurrency does offer some respite to the downtrend and give the community some reason to cheer. One such instance for the Doge Army – as its fans are called, is a ghost kitchen based in LA, California named ‘Doge Chicken’, which offers a variety of dishes inspired by the memecoin to entice DOGE users and has plans to start accepting payments in Dogecoin soon. The restaurant has plans to expand to multiple locations and launch DOGE-inspired merchandise as well, in an effort to rally up adoption of the cryptocurrency.
Key Levels to Watch
On the 4-hour price chart of DOGE/USD, moving averages and the MACD are exhibiting a bearish bias. Although, other leading technical indicators momentum and RSI suggest some buying interest as well.
DOGE/USD
Dogecoin’s price is sitting well below the pivot point at $0.30 and has broken past support at $0.28 and $0.25. The next key level is the immediate support being offered at $0.20 and if this level fails, the downtrend will become even more…
Read More: Will Dogecoin (DOGE) Hold Above $0.20? Several Factors Weigh