- Dogecoin (DOGE) experiences a notable market cap decline to $20.5 billion.
- The cryptocurrency has depreciated by more than 7% over the past week.
- Recent trends indicate a seller-dominated market, despite a slight volume increase.
Dogecoin faces significant challenges amid market downturn, shedding over 7% in a week and seeing its market cap shrink to $20.5 billion.
Dogecoin Encounters Sharp Market Declines
Recent analysis presents a gloomy picture for Dogecoin, highlighting its downward trajectory even before the broader market slump began.
Data depicts that DOGE began its decline around June 7, with its price falling from approximately $0.16 to $0.148 over the period, representing a decline of over 7%.
The downturn continued post-June 7, with DOGE trading at about $0.144 on June 10, marking another decline of roughly 1.4%. The trend persisted, bringing the value down further to $0.141, reflecting an additional drop exceeding 2%.
Furthermore, the analysis revealed that this drop pushed DOGE below its short-term moving average and its RSI dipped below the neutral line, signifying a bearish trend. As of now, the trend remains bearish with the RSI below 40 and the price finding new resistance at $0.15.
Declining Market Cap for Dogecoin
An examination of Dogecoin’s market cap shows a sharp decline in recent days.
CoinMarketCap data reveals that prior to the over 7% fall, DOGE’s market cap stood above $23 billion. However, this decline has brought it down to around $21 billion, and further trends have pushed it to $20.5 billion.
Despite this decrease, Dogecoin still holds the title of the largest memecoin by market capitalization. Moreover, there is a significant uptick in trading volume over the past 24 hours.
Sellers Continue to Dominate the Market
Recent statistics indicate a 38% surge in Dogecoin’s trading volume in the past day. Analysis using Santiment’s data shows the volume currently pegged at over $940 million.
This spike in volume, contrasting with the price trend, suggests that the market is currently experiencing more selling pressure than buying interest. The prevailing selling momentum explains the continued price downturn despite the increased trading activity.
Conclusion
In summary, Dogecoin is facing severe market headwinds, with significant price and market cap declines. The cryptocurrency market is exhibiting a bearish trend for DOGE, driven by a higher volume of sellers. Moving forward, stakeholders need to monitor market signals closely to gauge a potential stabilization or further decline in prices.
