Dogecoin (DOGE) Demand Decreases In Tandem With Price Drop: Analyst

Amidst the mania witnessed across the meme coin sector, Crypto Daily Trade Signals has pointed out a significant decline in the demand for Dogecoin (DOGE), alongside a slight price decrease. As a result of the drop, a Horizontal channel, a technical pattern in which price fluctuates inside a limited range, has been formed.

Dogecoin’s Price And Demand Sees Bearish Move

Crypto Daily Trade Signals’ review delves into the significance and impact of this decline on Dogecoin, the largest meme coin, and its network activities. On Thursday, the analyst spotlighted a pessimistic development in the demand for DOGE, particularly by over 18% in the past week, followed by a 1% decline in the crypto asset’s price.

According to the expert, the price of DOGE has been fluctuating within a limited range as a result of the recent drop in demand. In addition to Dogecoin‘s price oscillating in a narrow range, a horizontal channel has emerged.

The post read:

The demand for DOGE has declined. This has caused its price to trade within a range. The demand for Dogecoin (DOGE) has declined in the last week, on-chain data has shown. This decline in DOGE’s network activity has caused its price to oscillate within a tight range, forming a horizontal channel.

Horizontal channels are known as trend lines, which are used to depict the price range that lies between the upper line of resistance and the lower line of support. They can also be called Sideways trends or price ranges, and they do this by joining changeable pivot highs and lows.

Other key momentum indicators for DOGE indicate that neither buyers nor sellers control the market, due to the decline, which could impact the memecoin’s trajectory and cause a consolidation for DOGE.

Crypto Daily Trade Signals reported that DOGE’s daily completed transactions also witnessed a drop following the pessimistic demand. Data from IntoTheBlock shows that the daily count of addresses that completed transactions plummeted by 18% in the last seven days.

In a similar vein, there was a drop in new demand for the digital asset, indicating reduced interest and adoption among crypto investors. IntoTheBlock also claims that there were notably 21% fewer new addresses created to trade DOGE throughout the reviewed time.

DOGE Poised For A Double Price Rise

Although DOGE saw a price decline due to the development, Ali Martinez previously highlighted the potential for its price to double soon. According to the analyst, Dogecoin at the time of prediction was facing tremendous resistance between  $0.166 and $0.171.

Martinez noted that over 75,000 addresses have acquired about 10 billion DOGE at the aforementioned resistance level. However, if the asset manages to surpass the level, its price might double, with $0.322 serving as the next significant barrier.

Presently, Dogecoin is trading at $0.1606, reflecting a 0.77% increase over the past 24 hours, with a 24-hour trading volume of $1.09 billion. Its market volume valued at $23.21 billion is also demonstrating a similar percentage rise in the past day.

Featured image from iStock, chart on Tradingview.com