Dogecoin Lacks Buying Support; Can DOGE Cross $0.07?

Though Dogecoin is not regulated, it is a favorite for WallStreet crowds because it grew significantly in the last few years and drove the attention of famous media houses. It is one of the popular meme coins, which is backed by Elon Musk.

During its rise, many people joined the community with the fear of missing out, but in the last year, it has changed the momentum, and now DOGE continues its downward trend. Still, many people prefer Dogecoin over other cryptocurrencies for the following reasons.

Experts believe Dogecoin was raised by diamond hand, a term opposite of HODL. These two are popular terms; HODL means you buy a cryptocurrency and hold it for the longest time possible. It is a concept that works in Bitcoin but is not suitable for Dogecoin. The diamond hand is the opposite; it happens in Robinhood exchange, mainly used by the WallStreetBets crowd.

Robinhood crypto exchange disabled buys on GameStop. Everyone thought the price of GameStop would collapse because there was no buyer. However, sellers choose not to sell their stake.

After that, when Robinhood enabled the buy option, many new buyers entered the market to raise the price. Dogecoin benefited from this wave. If you are interested in buying DOGE, please read this DOGE forecast before investing.

At the time of writing, DOGE was trading around $0.06. Interestingly, if you exclude the spike of $0.09, you can find the candlesticks are forming sidewise, which suggests a consolidation phase, and Dogecoin will remain within a range for the next few weeks.

The candlesticks are forming within the range of $0.05 and $0.07. We think it is an ideal time for a short-term trade. The Bollinger Bands lack volatility, which also suggests a consolidation phase. Moreover, MACD and RSI are neutral. That means DOGE is not bullish for the short term.

Moreover, it is not an ideal time for long-term investment in Dogecoin, but we have to analyze the weekly chart for more details. The candlesticks have formed lower lows; it is now trading around the support of $0.05.

Meme coins are not suitable for long-term investment because the prices are influenced by social media news. In the long term, the technical and fundamentals will not play a vital role. That is why if you are too active in social media, you can invest in DOGE for the long term, but you have to book profit whenever it gives you sufficient return.