Dogecoin‘s value saw a decline this Tuesday, erasing some of the gains it made a day earlier. Recent data from Santiment indicates a significant drop in Dogecoin holders, with around 106,600 non-empty wallets disappearing since October 8.
Has User Activity Significantly Decreased?
Santiment reports that while active addresses hit a six-month high of 133,880 on October 10, the recent drop in user engagement is evident. As of now, Dogecoin’s price has fallen by 2.5%, stabilizing at $0.1131, which reflects a concerning trend in user activity.
“The rapid loss of Dogecoin holders is alarming. Users are expressing dissatisfaction with the performance of the leading meme coin and are quickly seeking alternatives.”
Is There Hope for Price Recovery?
Despite these challenges, analysts are eyeing the critical price level of $0.20 for potential upward movement. Currently priced at $0.113, Dogecoin has seen trading volume increase by over 100%, a surge that may help lift its price.
Key insights from the current situation include:
- A drop of 106,600 non-empty wallets since October 8.
- Active addresses peaked at a six-month high but are now declining.
- Analysts predict a price range of $0.12 to $0.25 in 2024 with substantial growth potential by 2025.
The current decline in Dogecoin holders, coupled with overvaluation metrics, poses a challenge to its price stability. Yet, the market’s dynamics and potential developments could pave the way for future positive price movements.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/why-is-dogecoins-price-dropping