DOGE/USD closed at $0.225800 after a high of $0.233400 and a low of $0.225200. Dogecoin dropped on Sunday after being flat on Saturday. It looks like the coin was struggling to find direction and then started declining amid selling pressure over the weekend.
Dogecoin came under pressure on Sunday after being pushed back from the top-10 cryptocurrency list by market cap. Avalanche became the tenth-largest cryptocurrency by market cap after it posted more than double-digit gains in November. The market value of AVAX reached $30.60 billion for the first time and pushed the market value of Dogecoin back to $30.30 billion. DOGE/USD came under pressure and declined in value as it fell from 10th place in the cryptocurrency market.
Furthermore, the strength of the Dogecoin-killer, SHIB/USD, has also been adding negative pressure on Dogecoin lately. DOGE has been facing selling pressure amid the renewed strength and popularity of SHIB/USD due to the continuous attempts by the SHIB community to promote their coin. The meme-based token DOGE faced heavy selling pressure when SHIB started gaining more adoption than Dogecoin as many exchanges began listing the coin on their platforms. Meanwhile, the rising US dollar also added negative pressure on DOGE/USD on Sunday. The DXY, which measures the greenback value against the basket of six major currencies, surged on Friday to its highest level since July 2020, at 96.24, and weighed on DOGE/USD as they share a negative correlation.
The strength of the US dollar was driven by the latest bullish and optimistic comments from Fed officials, who were of the view that the Fed might start increasing interest rates from a near-zero level if it accelerates the pace of its reduction bond purchases.
On the flip side, DOGE/USD was trying to limit its losses on the back of a report suggesting that the memecoin was the most-googled cryptocurrency in more US states than the leading cryptocurrencies, BTC and ETH combined right now. The analysts believe that it was possible because of the endorsement by Elon Musk.
Dogecoin Price Analysis – A Quick Technical Outlook
Due to a sharp selling bias, Dogecoin (DOGE) fell from $0.2550 to $0.2223 level. On the lower side, the $0.2173 support level violation can extend a selling trend in Dogecoin until the next support level of 0.2158 and 0.1607 level.
Daily Technical Levels
Pivot Point: 0.228133
If the price rises over the 0.2550 level, the bulls will try to push the DOGE/USD pair back to $0.2625. However, the bearish bias is dominant now, and it may lead it towards the next support level of 0.2173 and 0.1943 level. Good luck!