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Dogecoin Hits 40-Day Low: Navigating the Crisis

williamart808 - 2024-06-12 11:04:57

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The global memecoin market has been in the spotlight recently. However, a rare trading pattern has emerged, causing investors to shift their focus from large-cap assets like Dogecoin (DOGE) and Shiba Inu (SHIB) to mid-cap meme coins.


Dogecoin's Downward Spiral


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Dogecoin's price has been in a steady decline since May 26, falling by 22.54%. As of June 11, the price has dropped below $0.0137. This downward trend is close to reaching a critical danger zone.


Shiba Inu's Similar Trajectory
Like Dogecoin, Shiba Inu (SHIB) has also been on a downward trajectory since late May. Meanwhile, other memecoins such as PEPE have reached all-time highs, and Floki Inu (FLOKI) has surged following the approval of the Ethereum ETF.


Investor Reluctance and On-Chain Data
Despite the falling prices, on-chain data indicates that current DOGE holders are increasingly reluctant to sell. This suggests a potential stabilization of the market.


Key Support Level
DOGE has fallen below the crucial support level of $0.14. However, strategic investors in the over-the-counter (OTC) market might see this as a signal that the price has bottomed out and could start to build new positions.


As the week progresses, DOGE is likely to maintain its support level at $0.13. Investors and traders will be watching closely to see if this marks a turning point for the memecoin