Dogecoin was one of the most popular cryptocurrencies in 2021. It is referred to as a memecoin because it was never meant to be a mainstream asset. However, it rallied, and it rallied better than the expectations of investors. So much so that it was soon among the top ten cryptocurrencies in the world.
However, it is interesting to note that the hype has disappeared of late. And, the same has been starkly evident of late.
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The altcoin has been losing its value on the charts for more than nine months now. In fact, it hasn’t registered a rally since May 2021. Consequently, $0.69 is the highest level DOGE has hit thus far. On the contrary, the coin, at the time of writing, was lingering around $0.12.
The demand for DOGE has gradually diminished over the months. Over the macro timeframe, the meme coin has been somewhat consolidating with the bulls at rest. Furthermore, the bulls have often been witness to price depreciations that have cost DOGE over 10% of its value. Even relatively marginal corrections have emerged to be significant since they haven’t been balanced by recovery.
At the time of writing, the altcoin seemed to be inching closer to its next support level with every passing day. And, if the trend reversal doesn’t kick in, the token will fall further. The MACD seemed to be supporting that narrative too. However, the ADX is yet to indicate if the active trend has strength or not.
However, regardless of market conditions, investors are doing their best to counter the fall.
First of all, unlike Shiba Inu, DOGE investors are not only active on the network, but their participation is increasing. Even during unfavourable situations. Up from an average of 60k addresses, the count for Dogecoin investors peaked at 144k.
Secondly, to hold the price from falling due to a dump, DOGE holders are HODLing as much as possible. According to the alt’s Mean Coin Age, for instance, since November, investors are consciously accumulating in the hope of recovery.
This can also be backed by the change in HODLer distribution. Soon after the transition to accumulation, the 1-week to 1-month-old 25-26 Billion DOGE moved into the 1-month to 3-months cohort. And, at the end of January, the same shifted to the 3-months to 6-months cohort.
This means that investors are HODLing their DOGE, despite the lack of rally in the market. Well, not only is this essential, but it’s actually keeping DOGE from tumbling down the charts further.
As long as investors keep supporting DOGE, perhaps, we might not see the crypto fall below 10 cents anytime soon. Whether that is enough for another recovery rally, well, that is hard to say.
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