Another week comes with another painful and damaging performance from the first meme-themed digital currency, as the value of Dogecoin continues to fluctuate steadily.
Since attaining its all-time price high in May last year, Dogecoin has not had the best affirmative market performance, barring its slight rebound a couple of days ago. The value of DOGE has been on a steady and consistent decline as it breaks out of critical support zones to levels last experienced before the highs of 2021.
It did not help with the fact that any slight rebound in the value of the DOGE turned out to be just a flash, a temporary recovery.
The Price of DOGE is Going Lower
The available record has shown that the price of Dogecoin started consolidating in December last year, with the movement extending to about three months. But on February 22, the DOGE slid down below the $0.127 support zone, and since then, it has continued to spiral down further.
From the Fair Value Gap (FVG) zone, which extends from $0.075 to $0.119, the DOGE bears are ready to take action at this point. This is attributed to the price inefficiency that formed last April when Dogecoin rallied by 951% in the space of fewer than 25 days.
When situations like this occur, markets revert to the mean level to close the gap. As a result, the ongoing downward trend translates to traders attempting to close the gap. Meanwhile, the bearish market situation gives sidelined buyers the chance to accumulate as many DOGE tokens as possible at a discount.
Going by the analysis, the recent slow decline of the meme coin is interpreted as the DOGE’s working to fill in the price inefficiency. Hence, the price can be expected to drop by another 32% shortly and might stabilize at $0.075.
DOGE/USDT 1-day chart. Source: TradingView
The second phase of price consolidation for the DOGE is expected to take place as the value of the BTC continues to recover. If the price of BTC fails to achieve such a goal, then there will be no price consolidation for Dogecoin.
Achieving a decisive move up to or above the $0.127 barrier would see a brief pause from the downswing. In that case, the meme coin would attempt a rally around the resistance level for the week, set at $0.163.
Should this become successful, the recovery run of the Dogecoin would form a 28% ascension slope, and this would likely turn out to be the catalyst for which the rate would be capped.
The latest price review for Dogecoin shows a negative market performance occasioned by fluctuating prices and an unsteady recovery, which would have counted if it had been consistent like other cryptos in the market.
Despite the stormy days the leading meme coin has had, experts believe that once steady support and resistance levels have been found for a long duration, there will be lights at the end of the tunnel.