• 24 June, 2024
Market News

Dogecoin Wallet Growth Surges Despite 23% Price Dip: A Sign of Rising Popularity?

Dogecoin, the leading meme coin in the cryptocurrency market, has recently experienced a significant decline in value, plunging by 23% since its peak on December 9th. As highlighted by Santiment, an analytic platform, the number of Dogecoin wallets holding more than 0 DOGE coins has surged at an unprecedented rate in the network’s history. 

Over the past two weeks, 413.8 thousand new wallets, mainly containing between 0.001 and 1 DOGE, have joined the network. This growth in wallet numbers contrasts sharply with Dogecoin’s price trajectory, highlighting the cryptocurrency’s increasing popularity even as its value struggles.

https://twitter.com/santimentfeed/status/1754692279934374330

Crypto analyst Ali Martinez has raised concerns about Dogecoin’s future price volatility, pointing out a significant tightening in the Bollinger Bands on Dogecoin’s 4-hour chart, a phenomenon not seen since October 2023. 

Bollinger Bands are technical indicators that adjust based on volatility, and their current squeeze suggests a potential spike in Dogecoin’s price movements. Consequently, the market could see Dogecoin’s value either plummeting below $0.078 or soaring to new heights before experiencing a sharp decline. Dogecoin 4h Price Chart Shows Tight Squeeze In Bollinger Bands.

Moreover, the open interest in Dogecoin has shown a positive trend, with a +1.91% increase to $438.58M million, indicating growing interest from derivatives traders. Despite this, Dogecoin has faced significant long liquidations, particularly in the last 24 hours, with around $653,000 worth of long positions being liquidated. This liquidation likely contributed to Dogecoin’s price dip below $0.079.

Currently, Dogecoin’s price exhibits a slight decrease of 0.10% to $0.07826, with a market cap of $11.17 billion and a trading volume that has surged by 21.62% to $242.99 million. This situation presents a challenging market for Dogecoin, reflecting both investor caution and the potential for future volatility.

Crypto Patel, another prominent analyst, provided a more optimistic outlook for Dogecoin, predicting a potential $3 target in the current bull run based on historical performance and current chart patterns. He suggested a possible 50x breakout, setting an initial target of $1 and highlighting $0.11 as a critical breakout point. 

However, TradingView analytics indicate a bearish trend, with Dogecoin trading below its 50-day and 100-day exponential moving averages (EMAs), suggesting potential challenges ahead for the meme coin.

This dynamic landscape for Dogecoin underscores the volatile nature of the cryptocurrency market. Investors and enthusiasts are closely monitoring these developments, balancing the excitement of rapid wallet growth with the caution prompted by technical analyses and market trends.

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