Dogecoin: Why $0.1 remains elusive to DOGE bulls
- Less than 55% of DOGE holders are in profit.
- The price might keep consolidating around $0.08.
According to IntoTheBlock, Dogecoin [DOGE] holders in profit were back to 54% while those underwater had risen to 46%.
From the post shared by the crypto trading analysis tool, this data was in contrast to the season when Dogecoin transactions skyrocketed.
Dogecoin hit several milestones in December, including 5 million addresses with a balance and a significant spike in transactions.
This surge in activity initially fueled a price increase. However, the more recent price correction means that now just over half of Dogecoin… pic.twitter.com/jJZ0pSfTM9
— IntoTheBlock (@intotheblock) January 17, 2024
Price falls, holders follow
AMBCrypto found out that DOGE’s price action was the major cause of the decline. At press time, DOGE changed hands at $0.08. This value represents a 12.38% correction on a Year-To-Date (YTD) basis.
An assessment of the cryptocurrencies in the top 10 showed that DOGE’s performance within the period was one of the bottom three.
AMBCrypto found out that the conviction around Dogecoin’s potential has improved. This was because of the indications shown by the total amount of holders.
On the 1st of January, DOGE’s holder count was 5.71 million. However, on-chain data from Santiment showed that the number had increased to 5.76 million at press time.
The increase in the amount of holders indicated that demand for DOGE has jumped. Though the rise has slowed down, another jump could lead to a price increase. If this happens, the percentage of holders in profit could head toward 60%.
It’s a sideways thing for now
From the technical point of view, the DOGE/USD 4-hour pair showed that the coin has been consolidating. Also, Dogecoin’s technical state showed that it could take a while before it hits $0.1 as initially predicted.
One of the reasons for this could be linked to the Relative Strength Index (RSI). As of this writing, the RSI was 46.25, suggesting that buying momentum has weakened.
Volatility has also become minimal, the Bollinger Bands (BB) showed. So, DOGE might not make any sharp moves in the short term.
In addition, the MACD has also become flat, suggesting that the coin might continue to trade sideways. As it stands, DOGE might only move between $0.082 and $0.085 unless the market dynamics change.
In terms of network activity, Santiment data showed that it had declined. For example, active addresses on Dogecoin network on the 2nd of January was 192.420.
This number suggested that a lot of interaction and transactions occurred with the cryptocurrency.
Read Dogecoin’s [DOGE] Price Prediction 2023-2024
However, the same metric was down to 123,000 at press time. This decrease implies that speculation around DOGE has decreased. Like the active addresses, the one-day circulation also fell.
This meant that Dogecoin usage dropped but it could also be a sign that selling pressure might reduce.