Dogecoin was one of the most popular cryptocurrencies in 2021. It is called a memecoin because it was never intended to be a mainstream asset. However, it recovered, and it rose better than investors’ expectations. So much so that it quickly became one of the top ten cryptocurrencies in the world.
However, it’s interesting to note that the hype has faded lately. And the same has been evident lately.
Dogecoin under $0.1?
For more than nine months, the altcoin has been losing its value on the charts. In fact, it hasn’t registered a rally since May 2021. Consequently, $0.69 is the highest level DOGE has reached to date. Rather, the coin hovered around $0.12 at the time of writing.
The demand for DOGE has gradually declined over the months. Over the macro period, the meme coin has somewhat consolidated with the bulls at rest. In addition, the bulls have often witnessed price drops that cost DOGE more than 10% of its value. Even relatively marginal corrections appear to be significant, as they have not been offset by recovery.
At the time of writing, the altcoin seemed to be getting closer to its next support level every day. And if the trend reversal doesn’t kick in, the token will drop further. The MACD also seemed to support that story. However, the ADX has yet to indicate whether the active trend is strong or not.
Regardless of market conditions, however, investors are doing their best to counter the decline.
First, unlike Shiba Inu, DOGE investors are not only active on the network, but their participation is also increasing. Even in unfavorable situations. From an average of 60k addresses, the number for Dogecoin investors peaked at 144k.
Second, to prevent the price from falling due to a dump, DOGE holders keep HODLing as much as possible. According to the alt’s Mean Coin Age, for example, investors have been consciously piling up since November in hopes of recovery.
This can also be supported by the change in the HODLer distribution. Shortly after the transition to accumulation, the 1-week to 1-month-old 25-26 billion DOGE transitioned to the 1-month to 3-month cohort. And at the end of January, the same shifted to the cohort from 3 months to 6 months.
This means that investors are holding onto their DOGE despite the lack of a rally in the market. Well, not only is this essential, but it also keeps DOGE from sinking further down the charts.
As long as investors continue to support DOGE, we may not see the crypto drop below 10 cents anytime soon. Whether that’s enough for another recovery rally, well, that’s hard to say.
This post Evaluation of the probability of Dogecoin reaching $0.10 soon
was published first on https://ambcrypto.com/evaluating-the-likelihood-of-dogecoin-hitting-0-10-soon/