Dogecoin (DOGE) is currently facing low social media engagement and falling on-chain activity, which are raising concerns among investors. The cryptocurrency has recently experienced a 20% drop from its high at $0.171, with $37.15 million worth of liquidations seen in the last 24 hours. The majority of these liquidations were long positions, indicating a bearish sentiment in the market.
Following the global market panic caused by trade war developments, Dogecoin saw a significant price slide of 22.6% in just 24 hours. Bitcoin also experienced a 10.68% decrease in value during this period. With further losses expected, investors are advised to exercise patience and closely monitor the market trends.
Despite a surge in daily active addresses in November, on-chain activity for Dogecoin has since dropped to levels seen in January. Similarly, social dominance trend and volume have been on a decline, indicating a lack of interest and capital inflows into the market. Unless there is a significant shift in the price trend, attention and capital are likely to continue moving away from Dogecoin.
On March 12, there was a noticeable increase in social dominance coinciding with a surge in daily active addresses. This followed a 20% price bounce in a day, highlighting the importance of bullishness in the Dogecoin market. However, the funding rate turned negative after a week of bullish efforts, favoring sellers and suggesting further downside potential for the cryptocurrency.
The 1-day Dogecoin chart shows consistent selling pressure since December, with the On-Balance Volume (OBV) and Relative Strength Index (RSI) both indicating a bearish trend. The support levels at $0.131 and $0.102 from October 2024 are now considered the next price targets for Dogecoin. Despite a potential bounce to $0.154-0.164, the overall trend remains bearish in the near term.
In conclusion, Dogecoin is facing challenges such as low social media engagement, falling on-chain activity, and bearish market sentiments. Investors need to remain vigilant and monitor the price trends closely to make informed decisions. With potential price targets at $0.131 and $0.102, it is important to exercise caution and stay patient during these volatile market conditions.
