Dogecoin (DOGE) has whipsawed over the last month. After topping $0.30, it's now back to near $0.20. Why is Dogecoin going down, and will it go up again in 2021?
DOGE is now almost 70 percent below its 52-week high. However, it remains one of the biggest cryptocurrency gainers over the last year.
Why is Dogecoin going down?
There are multiple reasons Dogecoin is going down. There's been a general sell-off in cryptocurrencies, and Bitcoin, which briefly topped $50,000, has come down to just below $46,000. That sell-off seems to be weighing on DOGE.
Dogecoin is also being challenged by fellow meme cryptocurrency Shiba Inu (SHIB) after Coinbase added support for SHIB. Some traders pivoted toward the “Dogecoin-killer,” boosting SHIB over the last week.
Finally, as a meme cryptocurrency, Dogecoin needs regular social media support, and self-proclaimed “Dogefather” Elon Musk hasn’t tweeted about DOGE for some time now. He has, however, looked optimistic about Floki Inu.
Dogecoin's price prediction
Currently, Dogecoin's charts look bearish. It has fallen below its short-term 10-, 20-, and 30-day SMAs (simple moving averages), as well as its long-term 50-, 100-, and 200-day SMAs.
The meme crypto's MACD (moving average convergence divergence) also suggests "sell," and its 14-day RSI (relative strength index) is currently neutral at 35.4, but is nearing 30, which would suggest it's oversold. If Dogecoin falls further, $0.1971 could be a support zone—and if it falls below that, it could test the lows it saw in Jul. 2021.
Will Dogecoin go up in 2021?
Over the last couple of months, Dogecoin has seen good buying support at below $0.20. It's currently above $0.20, but another dip could attract bulls.
Is Dogecoin worth buying in 2021?
WalletInvestor forecasts Dogecoin could reach $1.517 by 2026, and Coin Price Forecast predicts DOGE could rise 27 percent and hit $0.29 by the year's end.
Before investing, it's worth noting that meme cryptocurrencies like DOGE are risker than more established ones like Bitcoin and Ethereum. Crypto bears also warn that digital assets are worthless and have no intrinsic value—in the worst-case scenario, you could lose your entire investment.
Should you buy DOGE now?
Dogecoin looks like it's in a massive technical downtrend and could fall below $0.20 again, at which point it could see support or crash further. For now, it would be best to stay on the sidelines.