Categories: Crypto News
| On
2023-09-24 3:56 PM

South Africa’s Dogecoin Hype Fizzles: Why Price Remains Steady?

  • Despite considerable recent hype, Dogecoin's (DOGE) price has remained static, trading around $0.06 (ZAR 1.13), even as it became a major topic of discussion in South Africa's cryptocurrency community.
  • Technical analysis indicates a dominant seller market for DOGE, with the coin's Directional Movement Index and Choppiness Index suggesting a lack of clear upward price trends and "choppy" market behavior.
  • The Aroon Indicator for DOGE highlights weakening upward momentum, with a stronger recent downward trend, urging South African crypto enthusiasts and investors to approach with caution.
By Nonhlanhla

As global crypto markets ripple with anticipation, South Africa’s thriving cryptocurrency ecosystem is no exception. Amidst all the buzz, Dogecoin’s recent performance, or lack thereof, has raised eyebrows. Here’s an in-depth examination of how Dogecoin fared despite the substantial hype over the weekend.

Dogecoin in the Limelight – Yet Price Remains Unchanged

Currently trading at approximately $0.06 (ZAR 1.13), Dogecoin (DOGE) has hovered within a confining price range over the past month. Despite the coin dominating conversations and becoming the weekend’s poster child for memecoins, its market value has remained unwavering. As per the social intelligence analytics from LunarCrush, Dogecoin emerged as the fifth most-discussed cryptocurrency. However, even this chatter has been unable to induce an uptick in its price.

Deep Dive into DOGE’s Market Behaviour

Since 17 August, Dogecoin’s valuation has stayed put, fluctuating marginally between $0.062 (ZAR 1.17) and $0.060 (ZAR 1.13). This stagnant price behaviour stems from a more extended period of market inactivity, coupled with the memecoin enthusiasts refraining from major trading actions.

Interestingly, the sellers seem to have claimed the upper hand. A closer look at DOGE’s Directional Movement Index on the D1 chart underscores their dominance. The Positive Directional Indicator (green) standing at 13.72 is overshadowed by the Negative Directional Indicator (red), positioned at 20.18.

The Choppiness Index, an integral technical indicator, offers another perspective. It has been on the rise since the conclusion of August, surpassing the 61.8 threshold. When assets dance above this limit, it hints at a “choppy” market – one where price movements are erratic, devoid of a transparent trend. Dogecoin’s current CHOP index reflects this, registering at 61.20.

Trend Indicators – An Insight into DOGE’s Market Status

DOGE’s Aroon Indicator, essential for ascertaining the strength and potential reversals of price trends, reveals a story of its own. The Aroon Up Line (blue), at a mere 7.14%, indicates the coin’s uptrend strength is waning. On the flip side, the Aroon Down line (orange) at 78.57% confirms that a recent low was achieved and the downward trajectory in the market remains significant.

Conclusion

South Africa, with its burgeoning crypto community, is always keen to discern market trends and potential investment avenues. While Dogecoin has undoubtedly garnered attention due to its memecoin status, its current market indicators suggest that traders are treading with caution. This crypto tale underscores the volatile nature of digital assets and the necessity for investors to stay updated and informed.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: Dogecoin