In recent weeks, the price of Dogecoin, the leader among memecoins by market cap, has dropped over 25% amid a general crypto market correction.
Current Dogecoin Price Dynamics
Dogecoin's price dropped over 25% over the past few days, trading around 26 cents on Thursday, February 6, during the early New York session.
Technical Analysis and Forecasts
Since December 2024, Dogecoin's price has been in correction mode after reaching a local high of around $0.48. Technical analysis shows that Dogecoin is forming a bullish pattern. The recent price drop to 20 cents retested the lower border of a falling trend, signaling a potential rebound. The Relative Strength Index (RSI) has been hovering at oversold levels recently, suggesting future growth potential when combined with support at the 200-day moving average.
Increased Interest in Dogecoin from Whale Investors
According to Santiment, Dogecoin wallets with balances between 10 million and 100 million coins have added more than 750 million during the recent market correction, now holding over 23.2 billion DOGE. The launch of the Official Trump (TRUMP) memecoin on the Solana network has also boosted confidence in the memecoin industry.
Despite the recent drop, Dogecoin maintains growth potential due to technical indicators and increased interest from major investors.
