The most well-known memecoin of cryptocurrencies, DOGE, has been continuing its downtrend for two months and is nearing its end. Apart from Dogecoin, which is trying to recover after the SNL broadcast, Elon Musk, who declared himself “DogeFather”, seems to have lost many of his power. Cryptocoin. com, during the quiet days of the market, DOGE fell below the $1.7 support. With the new buyer coming from the region, the over 20% increase recorded yesterday is now spending time again around $0.1844, down 10%. The $1 goal of DOGE fans has also been shelved for the time being.
DOGE is currently progressing far from peak
According to many crypto experts and analysts, the fact that Dogecoin does not have any underlying use cases and is only marketed by community members and supported on social media is objectionable. DOGE “memes” made on social platforms made the $1 dollar expectation quite realistic in the midst of investors at the height of May. But DOGE is extremely far from this hill at the moment and is trying to recover. Since the top, it is always regressing.
We can show the reasons for the decline, the inactivity of altcoin investors compared to analysts. The fact that DOGE’s price is not moving much may be due to general apathy towards the markets. For example, more than 713 thousand trader addresses were active in May, but that number has dropped to 312,000 last month, and at the time of writing the same number is set to only 297,000.
Who controls the Dogecoin market?
On the other hand, market participants, holding DOGE in the middle of 1-12 months, currently control memecoin. Only 1.25 million active addresses in May rose to 1.81 million in June, up from 1.80 million at the time of writing. This rising trend is due to the fact that old investors are now turning into long-term players, according to analysts. As the price was in a downward trend, these affiliates were unable to reserve their profits and extend their stay in the market.
In addition, the direction of unprofitability can be proven by the indicator “In/Out of the Money”. Metric, about 73%. He underlines that 41 addresses are free of charge. This essentially means that at the time of writing, DOGE is much lower than the average cost at which the memecoin was purchased. For DOGE, the number of major processes has also dropped in this process. While on July 15 only 1,230 major DOGE processes took place, in the second half of April the same process changed from 2,200 to the middle of 11,000. Additionally, over the past few days, bears have outnumbered bulls, which is not a good sign for DOGE’s price, according to analysts.
Finally, according to analysts, when the dormant traders return to the DOGE arena, an increase in the number of processes can be observed and the bulls can take back their control. Thus, the losses can be erased. All this, in retrospect, will lead to an uptick compared to analysts. Until then, Dogecoin’s health may continue to deteriorate, and presumably even Musk can do nothing about it.