The doge meme coin gained popularity just as quickly as the doge meme itself. After Elon Musk’s tweets in support, the number of dogecoin holders increased significantly.
Now, the doge meme coin’s value has been rapidly declining in the last few weeks with practically no end in sight. After the recent spiral, investors have gone from a $3 million valuation of dogecoin investments to $360,000. What does this mean for investors?
Read About: Dogecoin – What’s in a Meme?
The last 10 days
In the most recent news, the number of dogecoin holders has reduced by 40,000 as a mass exodus is being witnessed. Over a period of 10 days, the number of dogecoin holders has fallen by more than 7,00,000 investors. The coin seems to have lost more than 70% of its all-time high record in just a span of one year.
What was once a family of 4 million active investors, the highest number of holders that any meme coin has witnessed, its prices have now fallen to $0.1 and continues to fall. As investors are not quite confident about prices stabilising anytime soon, the number of dogecoin holders is predicted to reduce even further in the coming weeks. Plus, more and more investors are jumping ship.
Both short-term and long-term trends are looking bleak
While the entire crypto community is witnessing a downward trend, the exit from the doge meme coin seems to have an impact on the short-term and long-term future of the crypto.
When data from IntoTheBlock showed a majority of on-chains signals taking a bearish stand on DOGE, the decline began. The growth factor of the underlying network of doge meme coin was reduced by 0.16% in just one week.
Only 56% of the total number of dogecoin holders were making profits on their dogecoin investment, and even this figure was down by a massive 8.46% within the week.
The doge meme coin’s resistance levels were $0.135 while its support remains at $0.10, showcasing DOGE’s bleak and uncertain future.
Contributing Factors
The last couple of hours have shown a 200% spike in terms of the trading volume of the doge meme coin, but there was no corresponding increase in the price of the crypto. After a 7% price decline in just 24 hours, the trading volume spike points to investors booking profits or citing losses and settling position, exiting the fast depleting crypto. The market capitalization has also gone down by 6% within one day.
The most significant contributing factor can be that large investors are backing away. There was a 46% increase in transactions greater than $100,000 within 24 hours. At the same time, transactions above $1 million showed an 82% increase, clearly hinting at whale activity where the big investors drive the entire sentiment. When every single transaction can massively impact the crypto asset, the calls taken by investors become purely sentiment-driven in an attempt to cut losses. A large number of dogecoin holders must have probably exited after fearing the worst following one large investor withdrawing dogecoin investments.
All is not lost
Some investors are still hopeful about the doge meme coin. With the latest WooCommerce plugin that would allow Word Press websites to accept payments in DOGE, third-party payment processors can be eliminated. This utility of the doge meme coin could be its saving grace. As more and more retail stores also accept payments from crypto, their use cases increase, and investors will see much more potential in their investments.
Parting Thoughts
Though the fate of the doge coin hangs in the balance, only time will tell whether the coin will make a stellar recovery or fade away into history. What was once the most popular meme coin is now witnessing a mass exit as the number of dogecoin holders continues to fall.
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