The Dogecoin price has struggled to find direction in the past few weeks. DOGE is trading at $0.2642, where it has been in the past few days. This price is also about 22% below the highest level last week. Its market capitalization has also dropped to about $34 billion.
Why has DOGE struggled?
Dogecoin is a cryptocurrency that was developed in 2014 as a joke. The coin was created to be an alternative to Bitcoin, which is known well for its high cost of transactions and low speed.
For years, most people did not know about what Dogecoin was. Indeed, a quick look at Google Trends shows that very few people searched the coin.
This trend changed a few months ago when Elon Musk started tweeting and talking about cryptocurrency. Being the richest man and the founder of companies like PayPal, Tesla, and SpaceX, Musk is a highly respected figure. According to Bloomberg, he currently has a net worth of more than $340 billion.
In the past few weeks, Dogecoin price has remained in the sidelines as other cryptocurrencies surge. At some point last week, Shiba Inu became a bigger coin than DOGE.
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This trend has happened even as on-chain data show that activity within the ecosystem has been relatively strong. For example, more than 17 billion Dogecoins were sent on Thursday. These coins were valued at more than $4.5 billion and represented about 13% of the total market capitalization.
Further data show that the average transfer fee has risen in the past few days. This signals that activity within the network is relatively strong.
Therefore, the main reason why the Dogecoin price has struggled is that Elon Musk has been relatively muted about it. In the past, DOGE price tends to do well when he tweets and talks about it.
Dogecoin price prediction
The four-hour chart shows that the DOGE price has been in a narrow range recently. The price is trading at the same level where it has been in the past few days. This price is slightly below the important resistance level at $0.2715, which was the highest level in the first three weeks of October.
The price is also above the ascending trendline that connects the lowest level since September. It is also oscillating at the same level as the 25-day and 50-day moving averages.
Therefore, for now, the coin will likely hold steady as investors wait for a spark to ignite a bullish or bearish rally.