The Decline of Dogecoin Price: Is the Hype Fading?
The price of Dogecoin (DOGE), the leading meme coin, has been experiencing a significant slump in recent months. A crypto analyst, Ali Martinez, has highlighted that this drop in price may be due to a decline in interest and confidence in the meme crypto. The decreasing transaction volume and whale transaction count suggest a decrease in trading activity and market dynamics.
Decreasing Trading Activity
These lower trading metrics align with the current drop in Dogecoin’s price, reflecting caution and investor sentiment in the crypto market. Despite a recent rebound over the $0.082 level, DOGE’s price has fallen below $0.080.
According to Into The Block statistics, the volume of whale transactions for Dogecoin has declined by more than 50% compared to January 10, 2024. Additionally, the daily trading volume for DOGE has significantly dropped from $778 million to $286.87 million in just one month.
DOGE Price Drops Below $0.08
Currently, the price of Dogecoin stands at $0.0799 with a market cap of $11.42 billion. Despite a downtrend in daily trade volume, it saw a 7.38% increase to $286 million in the last 24 hours.
However, as the price drops, the open interest for Dogecoin also declines as derivatives traders withdraw their investments. Coinglass data shows that DOGE’s open interest decreased by 3.77% to $474.31 million. Furthermore, there have been significant liquidations of long positions, suggesting that long-term DOGE holders are selling to minimize losses and further contribute to the drop in value.
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