What Is Going On With Dogecoin's 'Painful' Price Action?

Dogecoin's DOGE/USD 25% monthly drop has taken it back to April 2021 levels, but traders remain optimistic for the longer run.

What Happened: Trader Altcoin Sherpa, in his latest tweet, pointed out that it is painful to see Dogecoin retrace a majority of its move and head back to value. He added that the meme coin has also lost its 200-week EMA. This indicator tells traders and investors the average closing price of a stock which is observed over 200 weeks.

However, the trader thinks "will do big numbers later this year."

Another crypto trader sees this as a key level to hold for the next position.

$DOGE / $USD – Update

$0.106c is the level to hold this week from the bulls. Will get into a position if we can hold nicely pic.twitter.com/fQgttT3cp2

— Crypto Tony (@CryptoTony__) July 12, 2024

Trader CryptoMakk predicted that Dogecoin on the daily chart looks like "it's ready for the next leg up." He added that the current price is trapped inside the range of April 2021. However, he does not see this range holding on for long, and "altcoins will fly" soon.

Also Read: Elon Musk Weighs In On Dogecoin Designer’s Criticism Of Biden: ‘Late-Stage Civilization Vibes’

Why It Matters: Much of the analysis by these traders reflects having a cautious stance on the meme coin leader. However, accumulating it for the longer run and buying in at current lower levels is the strategy suggested.

IntoTheBlock data noted a fall of 106.5% in exchanges netflows, while daily active addresses dropped 15.5%. Large transaction volume narrowed by 12.9%, while transactions greater than $100,000 remained relatively flat.

A single Dogecoin address holds 30.9 billion DOGE while 13 addresses hold 38.5 billion DOGE. This concentration of DOGE in a few addresses increases the risks of a significant price impact if these addresses sell off the coins.

What’s Next: The influence of meme coins and Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Dogecoin Trades Flat, ‘Price Recovery Faces Hurdle’ After This Key Level: Crypto Trader Says

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