Dogecoin (DOGE), the Shiba Inu-themed memecoin, finds itself in a curious scenario. Whereas the variety of holders and total curiosity in DOGE surges, its worth has skilled a major drop up to now week.

This inconsistency displays the broader volatility of the memecoin market, presently experiencing an inflow of novice merchants.

IntoTheBlock, a blockchain analytics agency, revealed a report variety of addresses holding memecoins for lower than a month in March.

This pattern suggests a surge in new traders drawn to the memecoin craze. Nevertheless, Dogecoin, regardless of main the pack when it comes to each merchants and transactions, has seen its worth tumble by over 20% within the final week.

DOGE Technical Indicators Grim?

Technical indicators paint a regarding image for DOGE’s rapid future. The Chaikin Cash Movement (CMF), which measures shopping for and promoting stress, has dipped under zero, indicating an outflow of capital and a bearish sentiment.

Supply: IntoTheBlock

Associated Studying: XRP Battle Cry: Should Rally 70% To Reconquer $1 Peak After Market Turmoil

Then again, the On-Stability Quantity (OBV), reflecting shopping for stress over time, has additionally declined, additional confirming a downtrend. This mix of falling costs and declining buying and selling quantity might exacerbate the drop and weaken DOGE’s assist ranges.

DOGE market cap presently at $24.6 billion. Chart: TradingView.com

Optimism Lingers For Memecoin

In the meantime, cryptocurrency analyst Dealer Mayne stays bullish on DOGE. He believes the memecoin might expertise a major worth improve if it could maintain its present assist ranges. Nevertheless, Mayne’s prediction hinges on DOGE’s skill to defy the present bearish technical indicators.

$DOGE

Huge spot right here for Doge imo.

Bulls actually need this space to carry, I feel shedding assist right here opens the door for a a lot bigger correction.

RR skewed positively for longs, if we maintain and might reclaim that outdated excessive the get together continues. pic.twitter.com/HgSX60XuXv

— Mayne (@Tradermayne) April 3, 2024

The broader cryptocurrency market sentiment additionally performs an important position in influencing particular person coin costs. If the general market experiences a correction, it might drag DOGE down additional. Moreover, regulatory scrutiny or damaging information surrounding memecoins might dampen investor confidence and result in a sell-off.

Dogecoin finds itself at a crossroads. Whereas new traders are pouring in, fueled by the memecoin craze, the latest worth drop and bearish technical indicators elevate considerations about its short-term future.

The selections of current holders, the whims of social media, and the general cryptocurrency market sentiment will all be essential components in figuring out whether or not DOGE can defy the percentages and reclaim its former glory.

Featured picture from Pexels, chart from TradingView