Dogecoin’s price fell sharply on Tuesday, covering some of Monday’s gains. According to Santiment’s on-chain metrics, the number of Dogecoin holders has decreased significantly, with a net loss of approximately 106,600 non-empty wallets since October 8th.
This trend is the reason for the growing dissatisfaction among traders with the performance of leading meme coins. It also caused many to look for quicker opportunities elsewhere. Sentiment appears to be changing across the cryptocurrency market. In the face of DOGE price volatility and reduced activity, participants are reevaluating their portfolios.
Dogecoin price plummets as MVRV indicator suggests overvaluation
The number of active addresses jumped to a six-month high of 133,880 for the first time on October 10, according to Santiment data. However, as of this writing, Dogecoin’s price is down 2.5% to $0.1131, and the number of active addresses is decreasing. From the cliff. This indicates a sudden drop in user activity.
š¶š The number of Dogecoin holders is rapidly decreasing. Since October 8th, the net decrease in non-empty DOGE wallets was -106.6K. Traders have expressed dissatisfaction with the performance of the biggest meme coin, prompting them to look elsewhere for a quick pump. pic.twitter.com/elpv0T71Ma
ā Santiment (@santimentfeed) October 15, 2024
Still, market analysts have recently diverted much attention to DOGE’s $0.20 price level. They believe that recent trends indicate positive signs of an upward trend. Currently, DOGE is trading at $0.113 while trading volume has surged over 100%. This could act as fuel to push Dogecoinās price towards its immediate higher goals. One reason for the increase in trading volume could be the fact that Grayscale recently hinted at the possibility of listing DOGE on its platform.
The MVRV metric indicates whether a particular cryptocurrency, such as DOGE, is undervalued or overvalued. Currently, DOGEās 30-day MVRV is 4.93%, suggesting the token is overbought.
This could indicate that this positive value of MVRV could mean an overvaluation of the cryptocurrency, leading to a potential decline. This increases selling pressure across crypto exchanges. In fact, historically whenever MVRV spikes, there is usually a correction afterwards and traders should be careful.
Possibility of moderate growth in 2024, possibility of significant upside in 2025
Dogecoin’s price is expected to see some reasonable appreciation in 2024, taking into account the recovery in the overall cryptocurrency market, and is expected to range between high $0.12 and low $0.25. Positive sentiment, active community support, and a resurgence of interest could drive prices higher, but increased market consolidation could slow such growth.
With a significantly improved bull market and major advances in technology, DOGE’s valuation could rise significantly by 2025. Predictions show it reaching between $0.22 and $0.50. This is because increased adoption, momentum, and partnerships will drive demand and corresponding price changes.
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Teuta
Teuta is a veteran writer and editor with over 15 years of experience in the macroeconomics, technology, cryptocurrency and blockchain industries. He started his career in 2005 as a lifestyle writer for Cosmopolitan magazine in Croatia and went on to cover business and economics for prestigious publications such as Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing that cryptocurrencies are one of humanity’s most important inventions. Her fintech efforts began in 2014 and focused on cryptocurrencies, blockchain, NFTs, and Web3. Known for his excellent teamwork and communication skills, Teuta holds a double master’s degree in political science and law, loves punk rock and Chablis, and has a passion for shoes.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
