Dogecoin has been a focal point in the cryptocurrency world, and a mix of positive and negative signals is setting its future. On one hand, the number of Dogecoin addresses has been increasing. On the other hand, the recent technical analysis gives less reason for optimism over the short to medium term. What must investors make of this dual narrative?
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Dogecoin Rising Adoption: Silver Lining
Data from the latest charts on Crypto Daily Trade Signals reveal that the number of Dogecoin addresses with a balance has grown to 6.56 million, up 20% from eight months ago. Such an adoption swing indicates that more people are holding on to their DOGE for further gains. This has developed into a strong vote of confidence in the cryptocurrency while its price has been unable to gain traction.
#Dogecoin Addresses Hit 6.56M
IntoTheBlock’s addresses metric highlights a continued increase in the total number of Dogecoin addresses with a balance. In the last eight months, addresses in the ecosystem grew 20.1% to 6.56 million from 5.43 million. Dogecoin price decline since… pic.twitter.com/A3im2BrcV0— Crypto Daily Trade Signals (@cryptodailyTS) August 16, 2024
This optimism, however, is somewhat offset by several short-term indicators. According to IntoTheBlock, the price of Dogecoin has been trending down despite the steady increase in active addresses. The Fear & Greed Index currently rests at 25, which translates to “Extreme Fear,” a direct indication that the market is in a state of worry. This often leads to increased selling pressure, further depressing prices.
Bearish Short-Term Forecast: Should You Be Worried?
Technical analysis by crypto price prediction platform CoinCodex indicates further bearish action in the immediate future for Dogecoin. It is estimated that by September 16, 2024, Dogecoin will drop by 14% to a price target of $0.087023. This is supported by the fact that over the past 30 days, Dogecoin has only spent eight days positive, indicative of its downward trend.
The price volatility has been high at 11% over the last month, indicating extreme swings in prices and uncertainty in the market. This kind of volatility at these levels, along with such extreme fear in the market, further indicates that there may be more downward pressure on Dogecoin in upcoming weeks. In that case, this may not be a good time for one to invest in…
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