With the sharp decline in trading volume, the activity of dog coins has significantly decreased.Bulls have the opportunity to gain a healthy entry point, but demand remains low
- With the sharp decline in trading volume, the activity of dog coins has significantly decreased.
- Bulls have the opportunity to gain a healthy entry point, but demand remains low.
Dogcoin fans have been hoping to rebound from the low points of the past two months. Unfortunately, the recent lack of demand has led to more surrender. But does the grandfather of memes have more hope?
DOE cannot ensure that sufficient demand for the rebound is reflected in its trading activities. According to the latest analysis of Dogcoin by IntoTheBlock, the number of active transactions involving memes has significantly decreased in the past four months. In the long run, the average daily trading volume of DOGE in June exceeded 2.1 million transactions. Since then, the number has dropped to below 38000 transactions per day.
The significant decrease in trading volume of dog coins can be clearly seen from its performance. As of the time of publication, its price was $0.058, which has decreased by 6% in the past 7 days. However, the sharp drop in prices did ultimately retest the important support level at which prices are currently located.
The current support level of Dog Coin has been tested and proven to be a strong price floor. This means that the demand for memes is likely to recover at the same level. So is there active demand at the same level?
Can Dog Coin bulls take advantage of discounts?
For bulls, the good news is that the decline in trading activity indicates that selling pressure has subsided. In addition, MeanCoin has been steadily rising over the past four weeks. This confirms that the buyer still holds their coins.
Nevertheless, the market still shows signs of downturn. For example, people may think that investor sentiment will rise, but in reality it is not. On the contrary, the weighted sentiment (yellow indicator) is still close to its lower monthly range, indicating a lack of bullish confidence at the current level.
Other indicators also confirm the current low demand situation, such as trading volume indicating that trading volume is still within the lower range of this month. This is because sustained economic factors may not necessarily stimulate investor confidence.
The latest downward trend has seriously affected investors' profitability. The market value and realized value (MVRV) is -30.6%, confirming that most DOGE holders are currently in a loss making state. The last time the MVRV ratio was so low was in October 2022, about 12 months ago.
The MVRV ratio indicates that the current level may be worth entering, as most traders hope to wait for a recovery. However, it cannot guarantee protection from further downside risks.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
