Dogecoin price remained in a bear market after falling by over 55% from its highest level this year.
Dogecoin (DOGE), the biggest meme coin in crypto, was trading at the important support level of $0.10 on Aug. 20, just above the lowest level this month.
This performance has occurred as the meme coin industry undergoes significant changes. Demand for traditional coins like DOGE and Shiba Inu (SHIB) has fallen as traders have focused on new and viral tokens like Dogwifhat (WIF) and Pepe (PEPE).
Data shows that Dogecoin, with a market cap of over $14.7 billion, had a 24-hour trading volume of $741 million. In contrast, Pepe, with a valuation of $3.2 billion, had a volume of over $1 billion.
Dogecoin’s demand has also declined in the futures market, where its open interest of almost $500 million is much lower than the year-to-date high of $2.2 billion.
Still, on the positive side, DOGE’s hash rate has continued rising and was at a record high of 1.2580 PH/s, up from January’s 818 TH/s. The mining difficulty has also jumped to an all-time high of 23.12 million.
DOGE price has formed a falling wedge
On the weekly chart, Dogecoin has been in a consolidation phase for over 13 months, with a strong bullish breakout that peaked at $0.2274 in March as Bitcoin and other coins soared.
On the positive side, the accumulation/distribution indicator has risen and is hovering at its highest point since April 2022, even as the coin fell by over 50% from the year-to-date high.
Additionally, DOGE has formed a rare falling wedge pattern, which occurs when two trendlines converge. Typically, this pattern signals a bullish breakout when the two lines converge, which is about to happen.
Therefore, this pattern suggests that the coin may soon experience a bullish breakout. If this occurs, DOGE could rise to the key resistance point at $0.1587, its highest swing in October 2022. This price target is about 56% above the Aug. 20 level.
