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$1 billion leaves Dogecoin market cap in a day; What’s next for DOGE?

$1 billion leaves Dogecoin market cap in a day; What's next for DOGE?

Meme cryptocurrency Dogecoin (DOGE) has extended its recent sell-offs to record a significant outflow of capital, with the asset’s price dropping below key bullish trendlines. 

At the moment, Dogecoin’s market capitalization stands at $11.7 billion, recording an outflow of about $1.15 billion within the last 24 hours. Notably, on December 11, the eighth-ranked cryptocurrency by market cap had a valuation of $12.85 billion. 

Dogecoin one-day market cap chart. Source: CoinMarketCap

Although no specific factor can be tied to the ongoing Dogecoin sell-off, the asset appears to be impacted by the general crypto market correction. Indeed, several assets have begun the week negatively, losing any prospects of sustaining the minor bullish momentum registered in recent days. 

Dogecoin price analysis

By press time, Dogecoin was trading at $0.08, with a correction of almost 9% in the last 24 hours. DOGE’s weekly chart indicates that the value has plunged by almost 15%. 

Dogecoin seven-day price chart. Source: Finbold.

At the current price, the decentralized finance (DeFi) token is facing resistance at the $0.95 level. If DOGE breaches the level, the cryptocurrency will be in line to reclaim the $0.10 zone, where bulls and buyers will need more work to sustain the gains. 

At the same time, Dogecoin faces a threat of further correction if the price falls below the $0.080s support level.

Dogecoin fails to sustain gains

Notably, Dogecoin has traded well below the 2021 highs, but the digital currency has been among the standout assets amid the prevailing market correction. However, the asset found some relief Tesla (NASDAQ: TSLA) CEO Elon Musk acquired Twitter. 

The acquisition has resulted in speculation that the meme coin will be integrated as a payment option on Twitter. 

In the wake of the acquisition, Dogecoin experienced sustained buying pressure, with a Finbold report on December 2 indicating that DOGE witnessed an inflow of about $5 billion in market capitalization within five weeks. 

Amid the correction, DOGE has witnessed increased interest from investors in the past. In this line, Dogecoin recorded a spike in demand among United States investors. In particular, the demand was highlighted by Google Trends searches for the keyword ‘Buy Dogecoin.’ 

What next for DOGE?

Moving forward, the Dogecoin community remains bullish, especially with news emerging that Musk and Ethereum (ETH) co-founder Vitalik Buterin is planning to work together and develop DOGE.

It is also worth noting that the FTX crypto exchange fallout has also impacted Dogecoin, and the losses might extend further with the expected macroeconomic news coming up in the course of the week.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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