Dogecoin (CRYPTO: DOGE) now faces a major downturn after losing a key support level, with the price proceeding towards the $0.22 level.
What Happened: According to an FXStreet technical analysis published on Tuesday, Dogecoin is headed towards the $0.22052 price level after losing the support located at $0.30788. This results in a downturn of 32.66% from this week’s Dogecoin’s high of $0.3275 and of over 24% from its current price of $0.2902.
FXStreet’s technical analysis placed Dogecoin at a crossroad, and if — instead of losing the support located at $0.30788 — it breached the resistance located at $0.32865, then it would be expected to reach $0.35151. This would have been a price over 21% higher than the current one.
This analysis follows a recent Motley Fool report highlighting how little use the Dogecoin blockchain sees despite it being one of the seventh biggest cryptocurrencies by market cap. The report’s author also claims that the coin’s value is largely dictated by the speculative actions of few wealthy individuals.
Price Action: According to CoinMarketCap data, Dogecoin is currently trading at $0.2893 after seeing its price decrease by about 3.15% over the last 24 hours.