The number of investors in the Dogecoin network appears to be declining, and the low activity of investors would lead to further price fluctuation for the meme cryptocurrency.
Analysts at FXStreet believe that the meme cryptocurrency is set to continue its downward trend as the token price has appeared unstable for some time now.
As DOGE’s Value Drops, Adoption Also Declines
As per data released by IntoTheBlock regarding the price action of the DOGE, the number of addresses for Dogecoin has been on a downward spiral, which saw it lose its value by almost 15%. The decline has been significant enough to note, from 4.55 million addresses to the current 3.89 million addresses.
According to experts’ opinions, the drop in the number of addresses points to increasing inactivity on the part of investors regarding their interests and adoption of the popular meme token.
Other analysts believe that both Dogecoin and Shiba Inu face a challenging period as the prices of their assets struggle to consolidate and regain their momentum. Both meme cryptocurrencies hit their lows, prompting analysts to forecast another price slump in the coming days.
Another exciting thing is that the meme cryptocurrencies are battling to recover from a double-digit decline in price over the past couple of days. It appears the market correction has taken its toll on their price performance.
Further price slumps are expected in the next few days. As the 13th largest crypto in the industry, Dogecoin has nosedived in price stability by 85% from its all-time high, and a further slump in value has been predicted to occur in the next couple of days.
Dogecoin Price Outlook
Going by the price analysis and the current reality surrounding the performance of Dogecoin, analysts have concluded that the price trend would assume a bearish outlook.
From the perspective of FXStreet’s analysts, the argument is that the price of the DOGE is replicating the previous falling wedge that has taken place before, which is considered a bearish move for the canine coin.
The decline extends the most extreme market correction period that Dogecoin has been experiencing, with the trend line getting tested and the price plummeting further down.
The lowest daily price of Dogecoin in the last 300 days occurred on March 13, considering that the downward price trend for Dogecoin first started in May 2021 and extended over to this year.
Shiba Inu may have been outperforming Dogecoin for quite some time. Still, the rival meme token is nowhere near the level experts expect it to reach, partly due to the crypto market undergoing occasional corrections or inactivity by traders and investors alike.
On the part of Dogecoin, the price reversal has always been on and off due to many factors. The current situation is heavily influenced by investors’ near absence of activity on the Dogecoin network.
In all these instances, analysts remain bearish when discussing the outcome of any price reversal for Dogecoin.