Dogecoin Struggles To Find Buyers Amid Lack of Catalysts

Dogecoin has recently moved out of the top-10 cryptocurrencies by market cap as it declined towards the $0.14 level after an unsuccessful attempt to settle above $0.17 in early February.

Where Are the Catalysts?

The recent rally in Shiba Inu showed that there is some interest in meme coins. However, this rally did not get any continuation, and Shiba Inu has already declined from $0.000035 to $0.000027.

Trading has been calmer in Dogecoin’s case, and the leading dog coin has been moving lower in the last two weeks amid a complete lack of interesting catalysts.

From a big picture point of view, Dogecoin has been moving lower since May 2021, so the meme coin desperately needs upside catalysts to change the current trend.

It should be noted that Dogecoin’s move was not correlated to the change in the total crypto market cap, which reached all-time high levels in November 2021, which means that the lack of internal catalysts served as the leading driver for Dogecoin’s massive pullback.

Dogecoin’s Downside Trend Stays Strong

Let’s take a look at the weekly chart for Dogecoin. The meme coin continues to move lower in a downside channel, and recent attempts to settle above the high end of this downside channel were not successful.

The key task for Dogecoin bulls is to push Dogecoin out of this downside channel and get to the test of the 50 EMA on the weekly chart, which is located near $0.1850. A move above this level will signal that Dogecoin will try to gain sustainable upside momentum.

However, it should be noted that the path of least resistance lies to the downside, so Dogecoin has a good chance to continue the current downside move in case it settles below $0.14 and gets below the support level at $0.1350. Traders will also have to monitor the general crypto market developments as the continuation of the crypto market pullback may put significant pressure on Dogecoin.