Dogecoin price has been consolidating for the past few days as the demand for cryptocurrencies continues to drop. At the time of writing, Dogecoin slipped 1.49% and was trading at $0.08075. The altcoin has crashed more than 63% this year and more than 4% in the past week. The total volume of DOGE traded over the last day has also declined sharply. Dogecoin ranks as the 9th most valued cryptocurrency after Cardano.
Dogecoin price has been under intense pressure for the past few months. Dogecoin started as a meme coin before trading at a significant discount to its all-time highs. Many investors believed that the altcoin was a great asset. However, its recent price action has left investors in jitters.
According to analysts, Twitter’s ongoing debacle has seen the DOGE price slump. The social network company might be on the verge of a collapse a few weeks after Elon Musk acquired the company. The firm’s debt has climbed from $596 million to $13 billion after Musk acquired the company.
Hundreds of employees from the firm have turned in their resignations after rejecting Musk’s ultimatum to keep working for the firm. This threatens the ability of the firm to keep running, hence hinting at a bankruptcy. Investors expected that Elon Musk would integrate DOGE into Twitter’s ecosystem, but with the company’s crisis, which is unlikely.
With the collapse of FTX earlier this month, investors remain in fear of buying cryptocurrencies. FTX, the second-largest cryptocurrency exchange in the world, filed for Chapter 11 bankruptcy in the US earlier this month. This has spread contagion fears in the crypto market.
Dogecoin Price Forecast
The daily chart shows that the Dogecoin price has been under intense pressure for the past few weeks. It has moved below the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is weak at 45. Despite the bearish catalysts, the DOGE price outlook remains uncertain. A bullish run will have bulls targeting the key resistance level at $0.10. However, a slip past the critical support level at $0.0722 will invalidate this view.