After a drop of over 25% within a month, the price of Dogcoin is $0.071
- After a drop of over 25% within a month, the price of Dogcoin is $0.071.
- The ratio of DOGE's network value to transactions has reached a five-month high, indicating that the value of counterfeit coins is surpassing their on-chain trading volume.
- The sharp drop in memes has scared investors, causing participation to reach a two-year low in the past 14 days.
The price of dog coins failed to rise after showing some potential signs of recovery, and ultimately fell to a five week low. Interestingly, investors have already anticipated this, as the same signals from the past month can now be observed.
Dog coin prices are low
At the time of writing this article, it can be seen that the price of dog coins is 0.071 US dollars, which has decreased by 6.3% in the past 24 hours. The bearish sentiment during the intraday trading session significantly increased, pushing DOGE to a low of 0.069 US dollars, dropping nearly 9% at one point. However, the final slight recovery resulted in the meme token falling slightly over 25% of its value last month.
Although broader market clues do play a role in price trends, considering the rise in the ratio of network value to trading (NVT), the same situation is expected to occur. This ratio measures the network value, which is the ratio of the market value of cryptocurrencies to transaction volume and value settlement.
This helps investors determine whether digital assets are overvalued or undervalued. High NVT values are associated with overvaluation and bond market peaks or corrections, while low NVT ratios are the opposite.
In terms of dog coins, the NVT ratio happens to be at a five month high of 163, which was last seen in December 2022. At that time, DOE ultimately failed to recover and fell again by 21% in the next 7 days.
Dog Coin NVT Ratio
Now, as the value of on chain transactions has exceeded the value of counterfeit coins, some modifications will correct the difference between the two.
Although some good data was released throughout early April, this development has scared investors to the point where they did not participate in the network. By the end of the month, the number of active addresses had decreased from 142000 to 117000 within 48 hours.
Dog coin active address
The last time less than 120000 users participated on the Dogecoin network was nearly two years ago, in July 2021. This indicates that investors will remain low-key until they see some recovery on the chart.
To achieve the same situation, the correction needs to end, given that the relative strength index (RSI) is close to the oversold area, which seems likely. This area is synonymous with recovery, and if meme coins fall into it, some green candlesticks may appear.
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