Dogecoin price has experienced a significant decline, falling over 55% from its peak this year. As of August 20, Dogecoin, the largest meme coin in the cryptocurrency market, was trading at a crucial support level of $0.10, just above its lowest value for the month.

This decline comes amid notable shifts within the meme coin sector. Interest in established tokens like Dogecoin and Shiba Inu has waned, with traders turning their attention to newer, viral tokens such as Dogwifhat and Pepe.

Data reveals that Dogecoin, with a market capitalization exceeding $14.7 billion, had a 24-hour trading volume of $741 million. In comparison, Pepe, valued at $3.2 billion, saw a trading volume surpassing $1 billion.

The demand for Dogecoin has also decreased in the futures market. Its open interest stands at approximately $500 million, significantly lower than the year-to-date high of $2.2 billion.

Despite these challenges, Dogecoin’s hash rate has been on the rise, reaching a record high of 1.2580 PH/s, up from January’s 818 TH/s. The mining difficulty has also reached an all-time high of 23.12 million.

Analyzing the weekly chart, Dogecoin has been in a consolidation phase for over 13 months. It experienced a bullish breakout in March, peaking at $0.2274 as Bitcoin and other cryptocurrencies surged.

Furthermore, the accumulation/distribution indicator has increased, reaching its highest point since April 2022, even though Dogecoin has dropped more than 50% from its year-to-date high.

Additionally, Dogecoin has formed a falling wedge pattern on the chart. This pattern, characterized by converging trendlines, often indicates a bullish breakout. As the lines converge, a breakout becomes more likely.

If this bullish breakout occurs, Dogecoin could rise to the key resistance level of $0.1587, its highest point since October 2022. This projection represents a potential increase of about 56% from its August 20 value.

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