Dogecoin’s price has dropped by more than 54% this year, and it’s looking like it might go even lower.
This is because there’s been a huge drop in transactions. According to on-chain records, Dogecoin’s transaction count has dropped from a high of 374,700 in mid-March to just 20,793 now. This is a 94% decrease in less than one month.
Dogecoin is known for having a strong community, but even that seems to be losing some energy. With fewer people using the coin and talking about it, its price might not be able to bounce back soon.
This change in activity is also showing up on social media. Dogecoin’s social volume has hit its lowest point in six months. This means fewer people are talking about Dogecoin online.
Meanwhile, Crypto Whales are reportedly selling off their Dogecoin holdings. According to a recent tweet from Ali Chart on X, a DOGE whale has dumped a heavy 1.3 billion coins over the last 48 hours due to the uncertainty in the market.
Now, this can easily become a trend among investors. Ali gave a chart that indicated the risk appetite of investors, which could further make the price drop. If these whales think it’s time to sell, other investors might follow the trend.
However, there is some hope for Dogecoin if it can hold a crucial support level at $0.13. Analyst Ali Martinez pointed out that Dogecoin has respected a rising trendline since October 2023, and this trendline now lines up with the 61.8% Fibonacci retracement at $0.13.
This makes $0.13 a very important level for Dogecoin’s price. If the price stays above this level, it could bring confidence back to investors. But if it falls below this level, the price could go even lower.
As of now, Dogecoin is trading around $0.1467, down more than 4%. It has briefly stayed near the $0.13 support, but it’s also touched a low of $0.1367 and a high of $0.1567 in the last 24 hours. Volume has also dropped by 26%, showing a decline in trading activity.
Martinez also warned that if bears continue to dominate, Dogecoin could drop as low as $0.06, representing a 59% decline from current levels.
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