More On: doge
In 2021, Dogecoin was one of the most popular cryptocurrencies. It is known as a memecoin because it was never intended to be a mainstream asset.
However, it rallied, and it rallied better than investors expected. So much so that it quickly became one of the top ten cryptocurrencies in the world.
However, it is worth noting that the hype has recently faded. And this has recently become abundantly clear.
Dogecoin for less than $0.1?
For more than nine months, the altcoin has been losing value on the charts. In fact, there hasn't been a rally since May 2021. As a result, $0.69 is the highest level reached by DOGE thus far. On the contrary, at the time of writing, the coin was hovering around $0.12.
DOGE demand has gradually decreased over the months. The meme coin has been somewhat consolidating over the macro timeframe, with the bulls at rest. Furthermore, the bulls have frequently witnessed price depreciations that have cost DOGE more than 10% of its value. Even minor corrections have become significant because they have not been offset by recovery.
At the time of writing, the altcoin appeared to be getting closer to its next support level by the day. If the trend reversal does not occur, the token will fall even further. The MACD seemed to agree with that narrative as well. However, the ADX has yet to indicate whether or not the active trend is strong.
Regardless of market conditions, investors are doing everything they can to mitigate the fall.
To begin with, unlike Shiba Inu, DOGE investors are not only present on the network, but their participation is growing. Even in the face of adversity. The number of addresses for Dogecoin investors peaked at 144k, up from an average of 60k.
Second, in order to keep the price from falling due to a dump, DOGE holders are HODLing as much as they can. According to the alt's Mean Coin Age, for example, investors have been consciously accumulating in the hope of a recovery since November.
This is also supported by the shift in HODLer distribution. The 1-week to 1-month-old 25-26 Billion DOGE moved into the 1-month to 3-months cohort shortly after the transition to accumulation. The same was true at the end of January for the 3-months to 6-months cohort.
This means that despite the lack of a market rally, investors are HODLING their DOGE. This is not only necessary, but it is also preventing DOGE from falling further down the charts.
As long as investors continue to support DOGE, we may not see the cryptocurrency fall below 10 cents anytime soon. It's difficult to say whether that's enough for another recovery rally.
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