Dogecoin saw a more than 5% drop in the wake of the news that its mascot died. The asset saw slight increases on the next following the announcement and gained almost 2%. However, it resumed the downtrend and has since lost nearly 5%.
The memecoin is in sync with the rest of the crypto market as the global market cap is down by almost 2%.
Nonetheless, on-chain data indicates a possible reason for the most recent drop. According to IntoTheBlock, the number of active DOGE wallets dropped by over 18% in the last seven days. The decline shows a more significant source of concern: a drop in the cryptocurrency’s demand.
Backing the previous statement is a 21% fall in the number of new addresses created in the last week. As a result, its trading volume is also plummeting.
According to another source, dogecoin daily peaked at $3 billion on May 24 but has dipped by over 53% since then.
Before the latest bearish action affecting the asset, it enjoyed a lot of attention from the ‘Dogee daddy,’ Elon Musk. Tesla announced the acceptance of cryptocurrency for its services, citing that customers can pay with crypto instead of fiat.
More on Onchain Data
Intotheblock’s data also indicates a possible reason for the drop in dogecoin demand. At the time of writing, 84% of the current holders are in profit despite the slight declines. With a more significant number of holders seeing gains, the psychological trait is either to sit on the current profit or sell off. This is in addition to the most recent crypto market sentiment.
Due to the current situation, the cryptocurrency is seeing less decisive volume to sway price significantly. It is also worth noting that the bulk of the unrealized profit is from traders who have held onto the asset for a year. It remains to be seen if they’ll continue to hold or sell off in the coming days.
Dogecoin’s Current Price Trend
Over the last three days, the memecoin has not registered any significant price change. However, price movement suggests a notable decline in volatility due to several catalysts.
A few hours ago, it tested the 50-day exponential moving average at $0.157, following several trials at $0.18. Nonetheless, it bounced off the metric as the bulls staged a buyback to reclaim lost levels.
Marking the third day of consecutive losses, the relative strength index is on the decline. It dropped from 60 to 50 due to the gradual increase in selling volume. It also lost its pivot point a few hours ago, which may spell more downtrends.
At the time of writing, the moving average convergence divergence is printing sell signals. The 12-day EMA is in contact with the 26-day EMA, which indicates the end of the bearish convergence. With the divergence about to start, traders expect more declines.
A few hours ago, DOGE dropped to the test of the 50% Fibonacci retracement level but rebounded. The impending bearish divergence suggests that the coin will lose the mark. This may open up the 61% fib for testing.
Dogecoin Price Prediction 2024
With the negative reading from indicators on the 1-day chart, the coin will decline to levels it hasn’t if the bulls fail to buy back.
On the 1-week chart, dogecoin’s performance in the last two weeks saw the asset hint of flipping bullish. It is worth noting that on this scale, there was a bearish divergence in the first week of May. The metric’s histogram shows a gradual increase in the bar. This indicates the sluggish movement of the 12-week EMA and the 26-week EMA.
The current week’s actions, in addition to the already declining RSI, hint at a continuation of the price decline on this scale.
The bulls need to reclaim the 1-day pivot point, as the pivot point standard points to a further decline to $0.10, the first pivot support. However, on the 1-week chart, the PPS points to a possible rebound at $0.13, which is also the 61% Fibonacci retracement level.
Following the rebound, the asset will attempt the first pivot resistance on the o1-day chart. It means that the bulls will try to break $0.19. If it gains stability above it, DOGE will flip the current high for 2024, $0.23.
On the 12-month chart, the second pivot resistance is at $0.27, and the third is at $0.33. These may be the highs the cryptocurrency attains this year.
Price Prediction 2025
Dogecoin will experience its most bullish year in 2025, and there is a precedent for that. Notably, in the year following the Bitcoin halving, the crypto market was set to experience significant increases.
For example, Bitcoin registered significant price declines following the last two halvings. After the 2016 event, it gained over 1300%. In 2021, the apex coin surged to a high of $69k but retraced and closed with gains of almost 60%. The coming year is no different, and the asset under consideration will enjoy the sentiment.
Currently up by over 77%, the coin will look to double the gains in the coming year. Nonetheless, it is worth noting that it may end 2024 between $0.27 and $0.33. An over 100% gain will see the asset surge above $0.50.
The one-week chart places the fifth pivot point at $0.46. This means the cryptocurrency will gain stability above the mark, returning to its launch price.
It is also worth noting that the current prediction is based on current fundamentals, as no impending events could impact the asset’s price trajectory in 2025. The coin will also see a renewed clamor for $1; it remains to be seen if this will happen.
Price Prediction 2026
The altcoin will experience massive downtrends in 2026. Using the precedent of BTC, that saw it drop from $1,206 in 2013 to $322 in 2014, from $18k to $4k in 2018, and from $69k to $16k in 2022. DOGE also had a fair share of this decline, losing over 50% in 2022.
With this in mind, the asset will see a 50% to 80% decline. A close in 2025 between $0.50 and $0.70 will mean the asset will decline to the current level at which it is exchanging. It will hit a low between $0.20 and $0.30.
It is also worth noting that the downtrend may reduce or halt during the fourth quarter of the year. The halt will result in a close between $0.30 and $0.40.
Price Prediction 2027
20227 is the year before another bitcoin halving. Traditionally, the crypto market has experienced more increases during this period than in the previous period.
For example, in 2019, the apex coin surged from its low of $3,694 and closed at $7,168, gaining 94%. In 2023, it recovered from $16,530 to a close at $42,258, a 155% increase.
Dogecoin is set to see a similar movement. It will see a 40%-80% increase. A close between $0.30 and $0.40 will mean a return to $0.50.
