Dogecoin (DOGE), the Shiba Inu-themed memecoin, finds itself in a curious scenario. Whereas the variety of holders and total curiosity in DOGE surges, its value has skilled a major drop prior to now week.
This inconsistency displays the broader volatility of the memecoin market, presently experiencing an inflow of novice merchants.
IntoTheBlock, a blockchain analytics agency, revealed a report variety of addresses holding memecoins for lower than a month in March.
This development suggests a surge in new traders drawn to the memecoin craze. Nonetheless, 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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However, the On-Stability Quantity (OBV), reflecting shopping for stress over time, has additionally declined, additional confirming a downtrend. This mix of falling costs and declining buying and selling quantity might exacerbate the drop and weaken DOGE’s assist ranges.
DOGE market cap presently 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 major value improve if it could possibly maintain its present assist ranges. Nonetheless, Mayne’s prediction hinges on DOGE’s potential to defy the present bearish technical indicators.
Large spot right here for Doge imo.
Bulls actually need this space to carry, I feel shedding assist right here opens the door for a a lot bigger correction.
RR skewed positively for longs, if we maintain and may reclaim that previous excessive the get together continues. pic.twitter.com/HgSX60XuXv
— Mayne (@Tradermayne) April 3, 2024
The broader cryptocurrency market sentiment additionally performs a vital position in influencing particular person coin costs. If the general market experiences a correction, it might drag DOGE down additional. Moreover, regulatory scrutiny or unfavourable information surrounding memecoins might dampen investor confidence and result in a sell-off.
Dogecoin finds itself at a crossroads. Whereas new traders are pouring in, fueled by the memecoin craze, the current value drop and bearish technical indicators increase issues 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 elements in figuring out whether or not DOGE can defy the chances and reclaim its former glory.
Featured picture from Pexels, chart from TradingView
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