Dogecoin has become the most successful meme coin of its time. But like any other cryptocurrency in the market, it has taken its own fair share of hits. This has seen faith in the meme coin decline significantly leading to a good number of investors pulling out of the asset. However, it seems like the worst is not over for Dogecoin as tens of thousands more investors are pulling out, painting a rather bleak future for it, especially in the short term.
40,000 Holders Exit Dogecoin
Dogecoin has been losing ground in terms of its price over the past year and this has been bleeding out into its investors. As such, investors have been exiting the meme coin en masse. The most recent batch of this exodus consisted of 40,000 DOGE holders who have now left the cryptocurrency.
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This happened over a period of ten days, following the news that Dogecoin had lost over 700,000 investors. It is a direct consequence of an ever-declining price with no end or reprieve in sight. After hitting its all-time high of $0.7 last year going off the hype from billionaire Elon Musk, the meme coin has had a hard time holding on to its gains. This has resulted in the loss of over 70% of its all-time high in the space of a year and continues to decline.
DOGE losses 40K holders | Source: IntoTheBlock
The number of active Dogecoin holders had peaked at almost 4 million, the highest of any meme coin. But as the prices had receded to the $0.1 level, investors had found themselves having to abandon ship or risk losing more of their investments.
It is predicted that more investors will exit the meme coin in the coming weeks. This is based on the fact that indicators show that DOGE may continue to trend low for both the short and long-term. Therefore, investors will leave in search of more profitable tokens.
DOGE Not Looking Good
The price of Dogecoin had surged on the news of Elon Musk being granted permission to buy social media giant, Twitter. Mostly this recovery had stemmed from the fact that Musk is an avid supporter of Dogecoin and investors in the space believe that the billionaire would further push the Dogecoin agenda on Twitter.
DOGE continues to trade around $0.13 | Source: DOGEUSD on TradingView.com
However, as time has passed and the hype from Musk’s Twitter bid has died down, Dogecoin has gone back to its usual trend of lower highs and lower lows. It had peaked at $0.17 following the Twitter update but has since corrected back down to $0.13.
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Presently, the meme coin is trading at $0.133, continuing to trade below the 100-day moving average. Indicators for the digital asset point towards strong sell pressure among investors which will in turn trigger further downturns. Its next resistance point lies at $0.136 while the best support exists at $0.124. Dogecoin closing below $0.14 at the close of the trading day will likely see it test this first support level in the midweek trading market.
Featured image from Market Forces Africa, chart from TradingView.com
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Author: Best Owie