Dogecoin (DOGE), despite noting almost 32%, is still due for further correction due to the lack of bullish cues.
Not only is the broader market opposing recovery, but even investors’ participation is signaling a downswing.
Dogecoin Holders Pull Back
Dogecoin’s price notes the negative impact of the investors’ fading confidence, reflected in their network participation. Evinced by the daily active addresses, the average number of DOGE holders conducting transactions on the network has come down to 57,000.
This is also the lowest figure observed in the last six months, as towards the end of October 2023, only 41,900 active addresses were recorded in a single day.
Dogecoin Active Addresses. Source: Santiment
Thus, the possibility of a decline is further amplified by the lack of confidence observed among DOGE holders.
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The same can be seen in the decline noted in the Relative Strength Index (RSI). This indicator assesses the magnitude of recent price changes to evaluate overbought or oversold conditions in a security or asset. It oscillates between 0 and 100, with readings above 70 indicating overbought conditions and below 30 indicating oversold conditions.
Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030
But if the resistance of $0.151 is flipped into a support floor, the meme coin would have a shot at invalidating the bearish outcome. DOGE will likely bounce back to breach $0.160 to continue recovery.
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