Dogecoin: Why DOGE prices are dropping despite memecoin mania

Interest in memecoins surged, however, DOGE’s price continued to decline.
Number of DOGE holders continued to increase as profitability remained the same.

The bull run that kicked off at the beginning of the year has been marked by the ever-increasing popularity of memecoins.

Based on recent insights provided by IntoTheBlock, it has been observed that the number of addresses holding meme coins for a duration of under thirty days reached an all-time high in the previous month. This suggests a substantial influx of novice traders engaging in the purchase of meme coins.

Source: The Block

Dogecoin continues to bleed

Dogecoin [DOGE] has outperformed all other memecoins in terms of both traders and transactions. However, despite this, the price of DOGE fell significantly over the last few days. At press time, DOGE was trading at $0.181 and its price had fallen by 15.33% in the last week itself.

The price of DOGE fell past the $0.193 level during this period. If things turn worse for DOGE, the price of the memecoin could decline further and reach the 0.15949 level as well.

The CMF (Chaikin Money Flow) of DOGE had declined and fell to -0.11.

With a CMF value below zero, it suggests a prevailing outflow of money from DOGE, indicating a bearish sentiment prevailing among traders. This suggests that selling pressure may be outweighing buying interest, exerting downward pressure on DOGE’s price.

Additionally, the OBV (On-Balance Volume) for DOGE also declined. Moreover, the declining OBV reflects diminishing trading volume over time, which, when coupled with falling prices, confirms a downtrend.

The reduction in trading activity alongside declining prices can intensify downward movements and weaken support levels for DOGE.

Source: Trading View

State of holders

Despite the decline in price, the MVRV ratio of DOGE remained high. This suggested that many holders were relatively profitable at the time of writing. It remains to be seen whether these holders hold on to their DOGE or begin to sell their holdings.

Additionally, the number of DOGE holders had also surged despite the fluctuation in DOGE’s price.

Read Dogecoin’s [DOGE] Price Prediction 2024-25

If this trend continues, there could be a reversal of the bearish move and the price could move toward the $0.2 level.

Other factors such as the social popularity of DOGE and Elon Musk’s comments about DOGE will play a crucial factor in the price movement of DOGE.