Dogecoin (DOGE), the Shiba Inu-themed memecoin, finds itself in a curious state of affairs. Whereas the variety of holders and total curiosity in DOGE surges, its value has skilled a big drop previously week.
This inconsistency displays the broader volatility of the memecoin market, at present experiencing an inflow of novice merchants.
IntoTheBlock, a blockchain analytics agency, revealed a document variety of addresses holding memecoins for lower than a month in March.
This development suggests a surge in new buyers drawn to the memecoin craze. Nevertheless, Dogecoin, regardless of main the pack by way of each merchants and transactions, has seen its value tumble by over 20% within the final week.
DOGE Technical Indicators Grim?
Technical indicators paint a regarding image for DOGE’s rapid future. The Chaikin Cash Stream (CMF), which measures shopping for and promoting stress, has dipped under zero, indicating an outflow of capital and a bearish sentiment.
Supply: IntoTheBlock
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Then again, the On-Stability Quantity (OBV), reflecting shopping for stress over time, has additionally declined, additional confirming a downtrend. This mixture of falling costs and declining buying and selling quantity might exacerbate the drop and weaken DOGE’s assist ranges.
DOGE market cap at present at $24.6 billion. Chart: TradingView.com
Optimism Lingers For Memecoin
In the meantime, cryptocurrency analyst Dealer Mayne stays bullish on DOGE. He believes the memecoin might expertise a big value improve if it could maintain its present assist ranges. Nevertheless, Mayne’s prediction hinges on DOGE’s skill to defy the present bearish technical indicators.
Large spot right here for Doge imo.
Bulls actually need this space to carry, I believe dropping assist right here opens the door for a a lot bigger correction.
RR skewed positively for longs, if we maintain and might reclaim that outdated excessive the celebration continues. pic.twitter.com/HgSX60XuXv
— Mayne (@Tradermayne) April 3, 2024
The broader cryptocurrency market sentiment additionally performs a vital function in influencing particular person coin costs. If the general market experiences a correction, it might drag DOGE down additional. Moreover, regulatory scrutiny or damaging information surrounding memecoins might dampen investor confidence and result in a sell-off.
Dogecoin finds itself at a crossroads. Whereas new buyers are pouring in, fueled by the memecoin craze, the latest value drop and bearish technical indicators elevate considerations about its short-term future.
The selections of current holders, the whims of social media, and the general cryptocurrency market sentiment will all be essential components in figuring out whether or not DOGE can defy the percentages and reclaim its former glory.
Featured picture from Pexels, chart from TradingView
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