Dogecoin (DOGE) Demand Decreases In Tandem With Price Drop: Analyst

Amidst Meme Coin Fever, Dogecoin (DOGE) Faces Bearish Move and Horizontal Channel Formation

Crypto Daily Trade Signals has observed a significant decline in demand for Dogecoin (DOGE), accompanied by a slight decrease in price. This decline has led to the formation of a horizontal channel, a technical pattern where prices fluctuate within a specific range.

Dogecoin's Price and Demand Show Downward Trend

Crypto Daily Trade Signals' analysis explores the impact of this decline on DOGE, the largest meme coin, and its network activities. On Thursday, the analyst noticed a pessimistic trend in DOGE demand, with an 18% drop in the past week, followed by a 1% price decrease.

According to the expert, DOGE's price has been fluctuating within a narrow range due to the recent dip in demand. Along with the price oscillation, a horizontal channel has emerged. The report states:

The demand for DOGE has declined, leading to price movement within a range.

On-chain data indicates that the demand for Dogecoin (DOGE) has weakened in the past week. This decline in network activity has caused its price to fluctuate within a tight range, forming a horizontal channel.

Horizontal channels serve as trend lines, marking the price range between an upper resistance line and a lower support line. They connect alternating pivot highs and lows, depicting sideways movement or price ranges.

Other key momentum indicators for DOGE suggest that neither buyers nor sellers hold market dominance. This decline could affect the memecoin's trajectory and potentially lead to consolidation.

Crypto Daily Trade Signals also reported a drop in DOGE's daily completed transactions following the pessimistic demand. Data from IntoTheBlock shows an 18% decrease in the daily count of addresses completing transactions over the past seven days.

Similarly, there has been a decline in new demand for the digital asset, indicating reduced interest and adoption among crypto investors. IntoTheBlock also notes a 21% decrease in new addresses created to trade DOGE during the reviewed time period.

DOGE Primed for Double Price Rise

Despite the price decline, Ali Martinez previously highlighted the potential for DOGE's price to double soon. At the time of the prediction, Dogecoin faced significant resistance between $0.166 and $0.171.

Martinez noted that over 75,000 addresses had acquired approximately 10 billion DOGE at that resistance level. If the asset manages to break above this level, its price could rally, with $0.322 as the next significant barrier.

As of now, Dogecoin is trading at $0.1606, representing a 0.77% increase over the last 24 hours, with a 24-hour trading volume of $1.09 billion. Its market cap, valued at $23.21 billion, also shows a similar percentage gain over the past day.

DOGE trades at $0.162 on the 1D chart | Source: DOGEUSDT on Tradingview.com

Featured image from iStock, chart on Tradingview.com