The past week has seen a decline in the demand for Dogecoin (DOGE), as indicated by on-chain data. This drop in activity within DOGE’s network has led to its price stabilizing within a narrow range, forming what’s known as a horizontal channel.
While DOGE’s price dipped slightly by 1% during this period, other popular meme assets experienced price increases. For instance, Shiba Inu (SHIB), Pepe (PEPE), dogwifhat (WIF), and Bonk (BONK) saw price hikes of 9%, 14%, 35%, and 30% respectively over the last seven days, according to CoinMarketCap data.
Data from IntoTheBlock reveals an 18% decrease in the daily count of addresses conducting transactions involving DOGE over the past week. Additionally, there has been a 21% decline in the creation of new addresses for DOGE trading during this period.
These reductions in daily active addresses and new addresses hint at a decrease in overall trading volume associated with DOGE. According to Santiment, DOGE’s daily trading volume reached its peak at $3.01 billion on May 24th but has since dropped by 53%.
This decline in trading volume can be partly attributed to the prevailing negative sentiment surrounding DOGE recently. On May 24th, its Weighted Sentiment hit a year-to-date low of -1.56. Currently, DOGE’s Weighted Sentiment stands at -0.35, indicating the prevailing negative sentiment.
When an asset’s price moves within a range, it suggests a balance between buying and selling pressures, with neither bulls nor bears being able to dictate a clear trend. This balance is reflected in DOGE’s key momentum indicators: its Relative Strength Index (RSI) stands at 53.52, while its Money Flow Index (MFI) is at 55.72. These readings indicate that neither buyers nor sellers have significant control over the market, indicating a state of equilibrium between buying and selling volumes.
May 2024, Cryptoniteuae
