The Dogecoin price has been under intense pressure for the past week. The DOGE coin has declined more than 21% since the start of September and nearly 23% in the last seven days. The coin remains more than 68% below its highest level this year. Dogecoin has a total market capitalization of $30 billion. It ranks as the 9th largest digital asset in the world. It is slightly below Polkadot and slightly above USD Coin.
Crypto Sell-off
The overall crypto market has been on a strong bear run for the past two weeks. The global crypto market capitalization is currently at $2.09 trillion, down from $2.35 trillion achieved recently.
The Bitcoin price has been on a bumpy ride, dampening the overall sentiment in the cryptocurrency market. The world’s leading digital coin failed to hold on above the crucial $50,000 level. Therefore, due to its close correlation to most cryptos, most virtual coins have also been declining.
The possible increase of tax charges for crypto traders is still gnawing on the global crypto market. On Monday, the House of Democrats outlined plans for series of tax increases. Some proposals from legislators included tax changes and new regulations that would have a major impact on the crypto market.
Dogecoin has been among the worst-performing cryptocurrencies in the market. Other coins that have been underperforming include Bitcoin, Ethereum, Cardano, Ripple, Chainlink, among others. The Dogecoin price outlook remains bearish as many traders leave their trades for high-yielding coins such as Cosmos and Tezos.
Dogecoin Price Analysis
The daily chart shows that the Dogecoin price has been on a bearish trajectory for the past week. Along the way, the coin has moved below the 25-day and 50-day exponential moving averages, reinforcing the bearish outlook. DOGE’s Relative Strength Index (RSI) has moved lower to 38, which is 8 points closer to the oversold region, a bearish indicator.
Therefore, the DOGE price is likely to continue edging lower in the short term as bears target the next support at $0.200. However, the bearish view will be invalidated if the price moves above $0.300.
