The value of Dogecoin dropped by 5%, representing its lowest weekly closing in the previous two months. The decline coincides with increased market turbulence, prompting questions about the coin’s future. Dogecoin has continued to garner substantial interest and support, meaning that despite this decline, its future may not be as dire as the price action would have traders believe.
Recent weeks have seen an increase in market volatility for cryptocurrencies, with Dogecoin (DOGE) suffering its fair share of setbacks. Some have questioned whether the meme coin’s bullish run is ending in light of the 5% decline that resulted in the closing of the lowest weekly candle in two months.
The decline has also triggered talks concerning the critical support levels that Dogecoin needs to maintain to prevent a more severe correction. Underlying data presents a more complex picture of Dogecoin’s market activity despite the price drop.
The number of wallets with non-zero DOGE balances has increased, as have large transaction volumes and daily active addresses. Increased activity indicates that market participants are still interacting with Dogecoin, indicating that demand for the cryptocurrency is still strong.
Dogecoin Maintains Strong Support Base, Records 33.5% Losses
Dogecoin has continued to have a robust basis of support based on market factors, such as significant transactions and active addresses. Social media activity and general market opinion frequently impact Dogecoin’s price fluctuations.
However, the coin is still accumulating 33.5% in monthly losses. Fortunately, 80% of Dogecoin holders are in the green zone. This is unlike what’s applicable last week, when traders recorded 83% losses.
Also, holdings by major traders are at 63%, while transactions that are more than $100,000 recorded marginal growth up to 266 transactions on April 28 and 250 transactions on April 27. Data from Sentiment shows that Dogecoin wallets with low assets had increased by 13.8%, meaning that meme coins have maintained their popularity despite the price consolidation.
Dogecoin Maintains Tempo, As Traders Look Forward to Future Performance
Although there have been worries over Dogecoin’s recent losses, the underlying data indicates that the user base and community are still interested and active. Whether Dogecoin can maintain its essential support levels and restore its bullish momentum will be determined over the next few weeks.
There have been some factors, including support levels, market sentiment, and broader regulatory developments, that are expected to determine the way forward. In his latest post, popular cryptocurrency trader Kevin, with an X username, OG_Yomi, expressed disappointment with Dogecoin’s current performance.
He wrote that it’s unfortunate that Dogecoin couldn’t bounce back the week it was expected to do so. He stressed that the coin has been operating on the lowest edge of the candle for over two months.
Dogecoin Trader Comments Says Coin Set to Correct at $0.125
Kelvin suggests that there would be a likely reset at the $0.125 to $0.13 price level. He insisted that this would be an essential support price level that would likely sustain Dogecoin’s bullish outlook. A drop of this magnitude can cause a downward trend in the price of Dogecoin. In another post, he clarified that the short-term price analysis should not be mistaken for a long-term price prospect for the Dogecoin.
He also expressed that there may be a massive bearish price trend in the meme coin market in the next two to three weeks. Kelvin has remained optimistic about Dogecoin’s future amid the negative trend. Also, in one of his posts, he noted that he would not be holding such a large amount of DOGE if he wasn’t optimistic about a potential price recovery.
He predicted a possible comeback in the next six to eight months. As of press time, Dogecoin is trading at $0.1409, a 5.6% drop in price in the last 24 hours. This development summed up its monthly cumulative loss to 33.5%. However, Dogecoin’s trading has been positive, increasing by 13.2% in the last 24 hours.
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