This summary text is fully AI-generated and may therefore contain errors or be incomplete.
The price of Dogecoin (DOGE) has experienced a decline today, following the overall trend in the cryptocurrency market. On November 28, DOGE’s price dropped by over 3.5% to $0.076, underperforming the broader crypto market, which fell by around 1.25% during the same period. This decline is part of a larger correction that has seen DOGE retreat by nearly 12.5% in just over a week.One possible reason for the drop in DOGE’s price is a bearish divergence between its price and a key momentum indicator. While DOGE’s price formed higher highs between October 6 and November 17, its daily relative strength index (RSI) dropped, forming lower highs. This indicates weakness in the prevailing uptrend and prompts traders to secure profits at local price highs.Another factor contributing to DOGE’s price decline is the rising dominance of Bitcoin in the cryptocurrency market. The Bitcoin Dominance Index, which measures Bitcoin’s market share compared to the combined weight of all altcoins, has risen by 0.83% in the past 24 hours. This suggests that traders have been moving their capital from altcoins to Bitcoin. In contrast, DOGE’s market dominance versus the rest of the crypto market has declined by over 1% on November 28.DOGE’s price decline may also be attributed to a bearish rejection at one of its strongest distribution areas. The price reversed after retesting its 0.236 Fib line near $0.081 as resistance. Since May 2023, DOGE has failed to close above this price level, indicating a high likelihood of continued pullback in December 2023.Furthermore, the reduction in DOGE supply held by its richest investors coincides with the price decline. The supply controlled by addresses with a balance between 100 million and 1 billion DOGE has dropped by nearly 1% in the past two weeks. On the other hand, the supply held by addresses with over 1 billion DOGE has increased by 0.5% in the same period. This suggests that whales, including crypto exchanges and over-the-counter trading desks, have transferred their DOGE to such platforms for selling purposes.In terms of the overall market outlook, DOGE needs to break above the upper trendline of its descending triangle setup to enter a bullish scenario. If this happens, the price may reach $0.10, its September 2022 resistance, by the end of 2023. However, bears will attempt to pull down DOGE/USD by 25% to $0.056 by the end of the year, and potentially even by 70% to $0.023 in Q1 2024 if the price breaks below the triangle’s lower trendline.It’s important to note that this summary does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.