Dogecoin price has plunged by more than 54% year-to-date. While such dips often represent a local bottom, on-chain data suggests that a rebound may not be anywhere in sight. In fact, the DOGE transaction count is currently at record lows, signaling reduced interest in the meme coin. As the demand wanes, how low will DOGE plunge?
Dogecoin Price Faces Risk as Transaction Count Plunges 94%
Dogecoin price is on the verge of a massive price decline after the transaction count on the blockchain dropped from a peak level of 374,700 recorded in mid-March to the current 20,793. This indicates that transactions related to Dogecoin have declined by as much as 94% decline in under one month.
This decline suggests that fewer people are interacting with DOGE or the Dogecoin blockchain. This highlights a bearish market sentiment because it means that the demand for this top meme coin is also low.
One of Dogecoin’s main selling points is a strong community. Therefore, when the transaction count plummets significantly, it signals weakness and reduced confidence that the price might rebound in the near term.
Besides transactions, the decline in Dogecoin social volumes to the lowest point in six months also shows a negative outlook on the price. It indicates that few people are mentioning DOGE on social platforms, which might accelerate the downtrend.
As network activity and social data indicate that the Dogecoin community might be giving up, the price faces a steep decline. As a recent Coingape article reported, DOGE whales are dumping the meme coin aggressively, which further supports the bearish thesis.
Dogecoin Price Analysis as $0.13 Support Level Holds
Dogecoin price shows a mixed sentiment on the one-day price chart. This top meme coin has formed a falling wedge pattern, which often indicates that the broader trend is about to reverse from bearish to bullish. If DOGE can overcome resistance at the upper trendline of the channel, it might spark a rebound.
However, technical indicators show a bearish divergence as they indicate that the demand has yet to resume. The RSI line has fallen to 34 after making a lower low. This highlights strong sell-side pressure leading to a bearish Dogecoin price prediction.
Meanwhile, the AO histogram bars are growing in length, further highlighting bearish strength. This suggests that Dogecoin price has yet to find a local bottom.
Popular analyst Ali Charts has also shared a DOGE forecast saying that this meme coin needs to defend support at $0.13. If DOGE successfully holds this support level, there will be room to make a rebound.
The post Dogecoin Price Unlikely to Rebound as Transaction Count Plummets 94% appeared first on CoinGape.
