Thursday arrived with most digital currencies exhibiting green candle lights for the last day of March, which continues an impressive run in the price action during the past 24 hours.
For its part, Dogecoin has been in an upward movement with a significant increase of 1.55% over the same period.
The month has been a rollercoaster ride for the industry as most of the cryptocurrencies, barring a handful of them, experienced positive market performance.
Meanwhile, investors are questioning whether the meme token has what it takes to become a leading utility asset or whether it can become just another crypto token waiting to rise and fall in value.
To answer this, let’s look into the possibility of Dogecoin making a statement for itself.
What Can DOGE Become?
Investors’ behavior has changed a bit because price indicators and other performance metrics did not show any periodic downward spiral that would warrant such a question from investors.
Dogecoin has managed to close above the about ten-month downward trend in the previous week, and the last couple of days have seen DOGE emerge in the positive with a 6.64% increase in value.
This happened due to the Relative Strength Index (RSI) standing where it was not situated in the overbought zone at that particular period. It might perhaps be that this paves the way to maintain the momentum and keep the trend flowing. Even so, the MACD did not display any bearish trend.
Moreover, the average balance on all addresses in the Dogecoin network began to spike two weeks ago, which later rose to a 2-month high at $4.781 on the 29th of March.
However, such metrics usually come up like this due to two likely events – the decrease in the number of addresses on the DOGE network or a price rally. These two situations hold the key to the performance pattern mentioned above.
Fortunately, the 3.83 million DOGE investors can be pretty excited as both factors were evident during the trading session in the past few days. Prices have gone up by 28% in the past two weeks, followed by the loss of 720k addresses at the start of the month.
All things have been equal; the volume of investors in the Dogecoin network has been the only concern. This led to the opinion by some that investors are no longer interested or have found a more suitable alternative.
At the moment, the closest rivals to Dogecoin, considering price and performance, are Shiba Inu and Cardano. Factor in that both DOGE’s competitors failed to add any significant increase in their investor count, and Dogecoin gets the upper hand.
However, after the exit of investors from Dogecoin, Cardano has added some 30K addresses. In contrast, Shiba Inu has lost about 7k investors between the first week of March and the end of the month.
There is an indication that the meme tokens are steadily losing their appeal to investors, considering the loss of addresses to other cryptocurrencies.