Dogecoin On-Chain Metrics Turn Bullish, But Why Is DOGE Price Down?

Key Dogecoin (DOGE) on-chain metrics recently turned bullish, suggesting that the foremost meme coin is well primed for a significant move to the upside. However, that hasn’t been the case, as Dogecoin’s price has declined lately. 

Dogecoin On-Chain Metrics Are Bullish 

Data from the market intelligence platform IntoTheBlock shows that 83% of Dogecoin holders are currently in profit at its current price level. Despite that, these investors have opted against offloading their tokens but have chosen to hold in anticipation of further price gains. This bullish mindset among these investors is evident from further data from IntoTheBlock, which shows that 65% of Dogecoin holders have held the token for over a year. 

Instead of selling, more Dogecoin investors are even moving their holdings to self-custodial wallets for long-term safekeeping. On-chain data shows that more DOGE tokens have been taken off exchanges than deposited into them. Specifically, a particular whale transferred 150 million DOGE tokens ($23.3 million) from Robinhood to an unknown wallet. 

Certain developments also add to Dogecoin’s bullish outlook. DOGE Day is set to take place on April 20, and crypto analyst Myles G predicts that the meme coin could experience a bullish resurgence on that day, rising to as high as $0.26. 

The Bitcoin Halving is also set to take place around that time, undoubtedly adding to Dogecoin’s bullish narrative. Meanwhile, Coinbase will launch Dogecoin futures on April 29 for its institutional clients, a move that will generate more interest in the meme coin. Given such developments, it is not out of place to wonder why DOGE’s price has maintained an unimpressive performance. 

Why DOGE’s Price Is Down

Currently, Dogecoin’s price looks to be reacting to the general bearish sentiment in the broader crypto market. As of April 12, the meme coin’s price was still enjoying a significant move to the upside as it looked to break the $0.20 resistance level. However, its price quickly came crashing down following a wave of sell-offs in the crypto market, which was partly triggered by Iran’s attack on Israel.  

Since then, Dogecoin and other crypto tokens have maintained this downward trend as crypto investors wait on the sidelines to see whether Israel will retaliate against Iran. The market is expected to pick up if Israel decides against heightening the regional conflict. However, things could get worse if Israel chooses violence and decides to escalate things. 

At the time of writing, DOGE is trading at around $0.15, down over 5% in the last 24 hours, according to data from CoinMarketCap. 

DOGE struggles to recover | Source: DOGEUSDT on Tradingview.com